Wait, what? WoodMac expects that US grid operators and utilities will commit to roughly 28% of the 1,066 GW requested to serve data centers. Why? Data center companies are handing them piles of unrealistic and “phantom” projects (duplicates sent to multiple utilities simultaneously in search of the best deal).
The reality: Roughly 12% of US data center projects have secured firm service commitments, according to utility forecasts, while nearly 17% seem “likely” to pan out.
Ghostbusters: To avoid more phantom projects, utilities are 1) collecting hefty application costs 2) calling for major collateral and 3) requiring top-tier credit ratings. Grid operators are also stepping things up: PJM says it’s improving large-load forecasting, and ERCOT is temporarily halting approvals while regulators take a closer look at the queue.
Wed, Aug 12
Molly Glick
Energy Central Team
NEWS: Don’t count on over two-thirds of the gigawatts requested by data centers, WoodMac says.
1