Growing data centre demand sparks renewable energy investments

US Energy Secretary Jennifer Granholm has assured that the country will be able to meet the growing electricity demands driven by the rapid expansion of data centres powering AI. The Department of Energy anticipates that electricity demand will double by midcentury due to factors such as manufacturing growth, electrification of vehicles, and AI development. Despite concerns from local communities about the strain on resources, Granholm remains confident that clean energy sources will be sufficient to handle this increased demand, bolstered by significant investments under recent legislation.

Granholm highlighted the strong growth in renewable energy investments, predicting the deployment of over 60 gigawatts of clean energy and storage capacity this year alone. However, she acknowledged the immediate challenge of building transmission lines to connect data centers to these clean power sources. The Department of Energy is working to expedite the permitting process for such projects, with public and private investments playing a key role in expanding infrastructure.

The growth of AI has put many renewable energy goals to a test. Collaborations between tech giants such as Google and energy departments are emerging as a solution to meet the surging demand. For example, a recent partnership in Virginia between Iron Mountain and the state’s energy department will introduce large-scale batteries to store renewable energy for data centers. Granholm suggested that such initiatives could turn the demand from data centers into a catalyst for further investment in renewable energy.

The United States DOE is also researching ways to improve efficiency in data centers, aiming to help tech companies increase computing power while managing energy consumption. Granholm, after recent meetings with tech and utility leaders, hinted at upcoming major announcements that would reinforce America’s leadership in technology and innovation.