Growing power demand for data centers has been one of the biggest stories in energy markets over the past year, with natural gas-fired power plants emerging as the primary choice for developers seeking to provide the 24/7 power these massive, energy-intensive sites require. That has led many energy firms to unveil plans to sell power directly to data centers but many tech giants have also announced their own deals. In today’s RBN blog, we’ll dive into recent announcements from firms like Apple, Amazon, Google, Meta and Microsoft, which intend to collectively spend about $300 billion this year alone to boost their AI (artificial intelligence) capabilities.
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As usual, let’s start with a refresher. We noted in Storm Front that a data center can be home to thousands or even tens of thousands of networked computers that process, store and share data. Data centers (see photo below) are energy-intensive, with electrical demand at larger facilities ranging from 100 megawatts (MW) to 2,000 MW and higher. Power demand for data centers is projected to grow substantially with the expansion of AI tools like ChatGPT and Perplexity, which require far more computational power — and energy — than conventional Google searches.
Figure 1. A Data Center in Loudoun County, VA. Source: Yondr
As we noted in Dive In and in Part 1 of this series, there are a lot of uncertainties about the scope and build-out of generation needed to power new data centers — from how much demand will actually grow for various generation fuels to logistical issues like transmission or equipment availability.
In addition to uncertainties about power, numerous logistical hurdles must be managed when selecting a location for a data center. As you’ll see below, many agreements remain vague, underscoring the difficulty of aligning the energy industry’s capabilities with the needs of the tech giants. While many gas producers and power generators are eager to supply their energy needs (in some cases forming joint ventures to advance those plans) and tech firms are hungry for it. Plans for building and siting these massive data centers must resolve a number of complex issues — real estate with water access, transmission lines, fiber optics, steel, and electricity infrastructure. The degree to which these factors can be satisfied will influence where the projects ultimately get built and how they’re powered.
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About the song
“We Should Be Friends” was written by Miranda Lambert and appears as the fifth song on Lambert’s sixth studio album, The Weight of These Wings. Released as the second single from the LP in December 2016, it went to #25 on the Billboard Hot Country Singles chart. Personnel on the record were: Miranda Lambert (lead vocals), Chris Carmichael (string arrangements), Chris Coleman (electric guitar, drums, violin, synthesizer, percussion), Spencer Cullum (steel guitar, lap steel), Luke Reynolds, Frank Rische, Scotty Wray (guitar), Glenn Worf (bass), Matt Chamberlain (drums, percussion), Hargus “Pig” Robbins (piano), and Chris Coleman, Madi Diaz, Frank Liddell, Annalise Liddell, Eric Masse, Aaron Raitere, Lance Reynolds, Frank Rische, Lillie Mae Rische, Gwen Sebastian, Lucie Silvas and Glenn Worf (backing vocals).
The Weight of These Wings was recorded in 2015-16 at The Casino in Nashville and produced by Frank Liddell, Eric Masse and Glenn Worf. The album is about Lambert’s divorce from Blake Shelton and her relationship with Anderson East. Released in November 2016, it went to #1 on the Billboard Top Country and #3 on the Billboard 200 Albums charts. It has been certified Platinum by the Recording Industry Association of America. It won Album of the Year at the 2017 ACM Awards. Four singles were released from the LP.
Miranda Lambert is an American country singer, songwriter and guitarist. She started her professional career in 2001, when she released her first studio album independently. Her major label debut album, Kerosene, came out on the Epic Nashville label in March 2005. She has released 11 studio albums, an EP, and 41 singles. She has won 35 ACM Awards, 14 CMA Awards, and three Grammy Awards. Lambert will be playing select concert dates in the U.S. beginning in April.
