"Off-grid power generally costs a lot more, partly because developers need to install more equipment than will be used at any one time in case machines break or need servicing. A lot of this gear is also less efficient than the airplane-size machines used at big power plants, meaning it needs to burn more gas to generate the same amount of electricity."
"By the end of 2025, an estimated 39 percent of the gas power capacity being developed in the United States was designed to serve data centers on-site, according to the Global Energy Monitor, a nonprofit organization that tracks energy projects. That is up from 5 percent at the end of 2024."
"The hyperscalers are not going to be curtailed because they can't get power, he said, using a term that refers to large tech companies. Power plants have bloomed in New Albany, Ohio, near Columbus, as if overnight."
Technology companies are turning to off-grid gas power generation for data centers as a solution to lengthy grid connection delays and rising electricity costs. While off-grid power is more expensive and less efficient than traditional power plants due to redundant equipment and smaller-scale generators, companies view it as necessary to avoid operational delays. By the end of 2025, 39 percent of new gas power capacity being developed in the United States was designed for on-site data center use, up from 5 percent in 2024. This trend reflects broader political tensions surrounding energy costs, sources, and allocation. Towns like New Albany, Ohio are experiencing rapid development of dedicated gas-fired power plants exclusively serving data centers.
#data-center-energy #off-grid-power-generation #gas-power-plants #energy-infrastructure #tech-industry-power-demands
Read at www.nytimes.com
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