Data centers powering artificial intelligence could use more electricity than entire cities
An Amazon Web Services data center in Ashburn, Virginia, US, on Sunday, July 28, 2024.
Nathan Howard | Bloomberg | Getty Images
The power needs of artificial intelligence and cloud computing are growing so large that individual data center campuses could soon use more electricity than some cities, and even entire U.S. states, according to companies developing the facilities.
The electricity consumption of data centers has exploded along with their increasingly critical role in the economy in the past 10 years, housing servers that power the applications businesses and consumers rely on for daily tasks.
Now, with the advent of artificial intelligence, data centers are growing so large that finding enough power to drive them and enough suitable land to house them will become increasingly difficult, the developers say. The facilities could increasingly demand a gigawatt or more of power — one billion watts — or about twice the residential electricity consumption of the Pittsburgh area last year.
Technology companies are in a “race of a lifetime to global dominance” in artificial intelligence, said Ali Fenn, president of Lancium, a company that secures land and power for data centers in Texas. “It’s frankly about national security and economic security,” she said. “They’re going to keep spending” because there’s no more profitable place to deploy capital.
Renewable energy alone won’t be sufficient to meet their power needs. Natural gas will have to play a role, developers say, which will slow progress toward meeting carbon dioxide emissions targets.
(See here for which stocks are helping to fix the nation’s power grid.)
Regardless of where the power comes from, data centers are now at a scale where they have started “tapping out against the existing utility infrastructure,” said Nat Sahlstrom, chief energy officer at Tract, a Denver-based company that secures land, infrastructure and power resources for such facilities.
And “the funnel of available of land in this country that’s industrial zone land that can fit the data center use case — it’s becoming more and more constrained,” said Sahlstrom, who previously led Amazon’s energy, water and sustainability teams.
Beyond Virginia
As land and power grow more limited, data centers are expanding into new markets outside the long-established global hub in northern Virginia, Sahlstrom said. The electric grid that serves Virginia is facing looming reliability problems. Power demand is expected to surge, while supply is falling due to the retirement of coal- and some natural gas-powered plants.
Tract, for example, has assembled more than 23,000 acres of land for data center development across the U.S., with large holdings in Maricopa County, Arizona — home to Phoenix — and Storey County, Nevada, near Reno.
Tract recently bought almost 2,100 acres in Buckeye, Arizona with plans to develop the land into one of the largest data center campuses in the country. The privately-held company is working with utilities to secure up to 1.8 gigawatts of power for the site to support as many as 40 individual data centers.
For context, a data center campus with peak demand of one gigawatt is roughly equivalent to the average annual consumption of about 700,000 homes, or a city of around 1.8 million people, according to a CNBC analysis using data from the Department of Energy and Census Bureau.
A data center campus that size would use more power in one year than retail electric sales in Alaska, Rhode Island or Vermont, according to Department of Energy data.
A gigawatt-size data center campus running at even the lower end of peak demand is still roughly comparable to about 330,000 households, or a city of more than 800,000 people — about the population of San Francisco.
The average size of individual data centers operated by the major tech companies is currently around 40 megawatts, but a growing pipeline of campuses of 250 megawatts or more is coming, according to data from the Boston Consulting Group.
The U.S. is expected see a growing number of data center campuses of 500 megawatts or more, equivalent to half a gigawatt, in the 2030s through mid-2040s, according to the BCG data. Facilities of that size are comparable to about 350,000 homes, according to CNBC’s analysis.
“Certainly the average size of the data centers is increasing at a rapid pace from now to 2030,” said Vivian Lee, managing director and partner at BCG.
Community impact
Texas has become an increasingly attractive market due to a less burdensome regulatory environment and abundant energy resources that are more easily tailored to specific sites, Sahlstrom said. “Texas is probably the world’s best experiment lab to deploy your own power solution,” the energy officer said.
Houston-based Lancium set up shop in 2017 with the idea of bringing large electric loads closer to abundant renewable energy resources in west and central Texas, said Fenn, the company’s president. Originally focused on cryptocurrency mining, Lancium later shifted its focus to providing power for artificial intelligence with the advent of ChatGPT in late 2022.
Today, Lancium has five data center campuses in various stages of development. A 1,000-acre campus in Abilene is expected to open in the first quarter of 2025 with 250 megawatts of power that will ramp up to 1.2 gigawatts in 2026.
The minimum power requirement for Lancium’s data center customers is now a gigawatt, and future plans involve scaling them up to between three and five gigawatts, Fenn said.
For data centers that size, developers have to ensure that electricity costs in neighboring communities don’t rise as a consequence and that grid reliability is maintained, Fenn said. Pairing such facilities with new power generation is crucial, she said.
“The data centers have to partner with utilities, the system operators, the communities, to really establish that these things are assets to the grid and not liabilities to the grid,” Fenn said. “Nobody’s going to keep approving” such developments if they push up residential and commercial electric rates.
Renewables not enough
Data center campuses run by publicly-traded Equinix are rising to several hundred megawatts from 100- to 200 megawatts, said Jon Lin, general manager for data center services at the company. Equinix is one of the largest data center operators in the world with 260 facilities spread across 72 metropolitan areas in the U.S. and abroad.
Developers prefer carbon-free renewable energy, but they also see solar and wind alone as unable to meet current demand due to their reliance on changing weather conditions.
Some of the most critical workloads for the world’s economy, such as financial exchanges, run at data centers operated by Equinix, Lin said. Equinix’s data centers are online more than 99% of the time and outages are out of the question, the executive said.
“The firmness of the power is still incredibly important for these data centers, and so doing that solely off of local renewables is candidly just not an option,” Lin said.
The major technology companies are some of the largest purchasers of renewable power in the U.S., but they are increasingly turning to nuclear in search of more reliable sources of electricity. Microsoft is supporting the restart of the Three Mile Island nuclear plant outside Harrisburg, Pennsylvania through a power purchase agreement. Amazon and Alphabet’s Google are investing in small nuclear reactors.
But building new nuclear reactors is expensive and fraught with delays. Two new reactors in Georgia recently came online years behind schedule and billions of dollars over budget.
In the short run, natural gas will fuel much of the power demanded by data centers, Lancium’s Fenn said. Gas is the main, short-term power source providing the reliability these facilities require, Boston Consulting Group’s Lee said.
Investments could be made in new gas generation that adds carbon capture and battery storage technology over time to mitigate the environmental impact, Lee said.
The industry hopes that gas demand will taper off as renewables expand, battery storage costs come down and AI helps data centers operate more efficiently, Fenn said. But in the near term, there’s no question that data center expansion is disrupting technology companies’ emissions targets, she said.
“Hopefully, it’s a short term side step,” Fenn said of stepped-up natural gas usage. “What I’m seeing amongst our data center partners, our hyperscale conversations, is we cannot let this have an adverse effect on the environmental goals.”
Note: CNBC analysis assumes a data center campus is continuously utilizing 85% of its peak demand of a gigawatt throughout the year, for a total consumption of 7.4 billion kilowatt-hours. Analysis uses national averages for household electricity consumption from EIA and household size from Census Bureau.
On today’s high-powered episode of Quick Charge, we’ve got Honda fuel cell manager David Perzynski here to talk about Honda’s forty year history developing hydrogen powertrains, and the role Honda sees for HFCEVs in a battery dominated world.
In the course of the conversation we talk about several hydrogen articles posted in 2024, as well as some Honda projects related to CES. You’ll be able to read more about those, below. Enjoy!
Source Links
Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple Podcasts, Spotify, TuneIn, and our RSS feed for Overcast and other podcast players.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news!
Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.
FTC: We use income earning auto affiliate links. More.
Sixthreezero’s wide range of electric bike models includes some fairly out-there models, but the company’s new four-wheeled electric bike really charts a new direction in the industry. Take a look at the new ANYterrain Stabilized 4-wheel Electric Bike.
It’s a mouthful of a name, but the ANYterrain Stabilized 4-wheel Electric Bike hauls more than just a bunch of extra words. The bike is rated to carry up to 350 lb (159 kg), and the 750W motor ensures it has the power to do so. With speeds of up to 20 mph (32 km/h), the quad bike is just as fast as most Class 1 and 2 e-bikes.
But the real game changer here is the design, offering four-wheeled stability that riders can’t get from a conventional three-wheeled trike.
Not only do four wheels provide better stability with a wider footprint, but the steering on the bike uses leaning geometry to take turns more naturally, helping riders feel even more stable.
With 20″ wheels in the rear and 16″ wheels in the front, the quad bike keeps a fairly low center of gravity. All four wheels use 4″ fat tires for better offroad riding and more comfortable shock absorption compared to narrow tires, and the rear wheels even feature a differential to better apply the motor’s power to the ground.
A twist throttle makes it easy to roll on that power, and a D/R switch on the bars lets riders put it in reverse for cases where they need a little help wiggling around in tight spaces. Pedaling backward from a stop can also engage the reverse. At 120 lbs (54 kg), this isn’t the type of bike you can just pick up and move around the garage without a little help so that reverse feature will likely come in handy.
A 48V and 20Ah battery offers 960Wh of capacity, which the company says translates into a range of up to 50 miles (80 km).
The battery is housed under a cargo basket in the rear, though a bench seat can be swapped for the basket, allowing riders to carry a passenger with them.
Electrek’s Take
This certainly won’t be a mass market type of e-bike, but I can see a real use case for neighborhood riding and local errands, especially for folks who don’t feel stable on a bicycle or even a trike.
Despite trikes offering great stability when going straight, some people can feel uncomfortable making turns on a trike, especially at higher speeds, because they can sometimes feel tippy under certain scenarios. This quad bike can still tip if you take a turn sharp enough, but the wider stance combined with the leaning steering means riders will even more stable than on a trike.
And since this will likely be used more by older riders, the reverse is an important feature for letting folks park the bike easily without dismounting and dragging it around.
There could be some legal hurdles in some areas that define “bicycles” as having either two or three wheels, but I’m guessing most cops aren’t jumping at the opportunity to ticket grandma for riding her quad bike on the local rails to trails network.
I love seeing more options like this, and I commend Sixthreezero for providing such interesting options to add to the market.
FTC: We use income earning auto affiliate links. More.
![Here are the best EV lease deals for under $300 right now [live updates]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2024/08/Honda-Prologue-lease-Civic.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Who said you had to break the bank to drive an electric vehicle? Several EV lease deals are available this December for under $300 or even $200 per month, but the savings may not last long. Here are some of the best EVs to consider leasing right now.
Electric vehicles accounted for nearly 9% of all vehicle sales in the US in the third quarter, its highest level on record.
“The growth is being fueled in part by incentives and discounts,” According to Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive. The other part is the influx of more affordable models hitting the market.
In addition to the $7,500 federal tax credit, some discounts on EV models are reaching $10,000 to upwards of $20,000.
The massive incentives slash monthly payment prices, in many cases making them even more affordable than comparable gas-powered cars. According to a new Experian report, leasing accounted for 45% of all new EV transactions in the third quarter. That’s up significantly from 25% last year and just 9.5% in Q3 2022.
Including incentives, the average monthly payment for leasing an EV was $198 less than if you financed a new model.
With Trump’s transition team reportedly planning to “kill off” the $7,500 EV tax credit, the savings could largely disappear. As buyers rush to take advantage of the discounts, EV sales are expected to surge this month.
EV lease deals for under $300 a month this December
To close out the year strong and make room for new models, several companies are offering significant discounts on popular electric models, including Kia, Hyundai, Honda, GM, Ford, Stellantis, and more.
According to online automotive research firm CarsDirect, several EV models are even available for lease for under $300 or even $200 per month right now. You can view offers in your area at the bottom.
| Lease From | Term (months) |
Due at Signing | Effective rate per month (including upfront fees) |
|
| 2025 Nissan LEAF | $129 | 36 | $2,529 | $199 |
| 2025 Kia Niro EV | $149 | 24 | $3,999 | $315 |
| 2024 Kia EV6 | $159 | 24 | $3,849 | $319 |
| 2024 Hyundai IONIQ 5 | $159 | 24 | $3,999 | $326 |
| 2024 Hyundai IONIQ 6 | $159 | 24 | $3,999 | $326 |
| 2024 Nissan Ariya | $169 | 24 | $6,219 | $428 |
| 2024 Fiat 500e | $179 | 42 | $2,979 | $250 |
| 2024 Toyota bZ4X | $219 | 39 | $2,999 | $296 |
| 2024 Honda Prologue | $229 | 36 | $1,299 | $265 |
| 2024 Ford F-150 Lightning | $230 | 36 | $6,206 | $402 |
| 2024 Ford Mustang Mach-E | $251 | 36 | $5,440 | $402 |
| 2024 Subaru Solterra | $279 | 36 | $279 | $287 |
| Tesla Model 3 | $299 | 36 | $2,999 | $382 |
| Tesla Model Y | $299 | 36 | $2,999 | $382 |
| 2024 Chevrolet Equinox EV | $299 | 24 | $3,169 | $431 |
The 2025 Kia Niro EV remains one of the most affordable electric cars on the market, with leases starting at as low as $149 for 24 months. With $3,999 due at signing, the effective rate is just $315 per month. That’s even cheaper than the plug-in hybrid model at $414 per month (including $3,499 due at signing).
Kia also offers a $199 per month for 36 months EV lease deal. With $3,999 due at signing, the effective cost is just $310 per month.
The EV6, Kia’s dedicated EV based on the same platform as Hyundai’s IONIQ 5, is listed with lease prices as low as $159 for 24 months. With $3,849 due at signing, the 2024 Kia EV6 Light Long Range RWD trim costs just $319 per month to lease.
Speaking of the IONIQ 5, Hyundai’s electric SUV is also available to lease this month for under $200. Through its “Hyundai Getaway Sales Event,” Hyundai is offering a $159 for 36 months lease offer on the IONIQ 5. Hyundai’s big savings come as the upgraded 2025 model is arriving at dealers.
You can also snag the 2024 Hyundai IONIQ 6 for the same $159 per month. With $3,999 due at signing the effective cost is just $326 per month.
Nissan’s Ariya electric SUV is another top choice, with lease prices starting at as low as $99 per month. However, that’s only available in Colorado. In other parts of the country, like New York, the 2024 Nissan Ariya is listed at $169 for 24 months. With $6,219 upfront, the effective rate is $428 per month.
Fiat’s compact 500e EV is available to lease for $179 for 42 months this December. With $2,999 due at signing, you can lease the 2024 500e INSPI(RED) trim for just $250 per month.
You can score Fiat’s EV for even cheaper in some areas. For example, one dealership in Colorado is offering a $0 for 27 month lease deal with $0 down, making the 500e essentially free.
Honda’s Prologue was the third best-selling EV in the US last month as sales continue surging this year. In a year end promo, Honda made the electric SUV even more attractive with a 0% APR offer and up to $6,000 off.
Although not under $200, you may want to consider a few other EV lease deals this month. For example, Honda is offering its electric Prologue at just $259 per month for 36 months. With $2,999 due upfront, you can drive off in Honda’s electric SUV for just $342 per month. That’s less than a Honda Civic at $279 per month despite costing nearly twice as much.
At just $299 for 24 months, the 2024 Chevy Equinox EV is also worth a look. With $3,169 due at signing, you can lease the electric Equinox for just $431 per month.
Tesla is offering three free months of Supercharging and Full Self-Driving in its year end deals. However, you must take delivery by December 31, 2024.
Ford is another company making a strong end of year push with big savings on electric models. Through its new “Power Promise”, all EV buyers get a free Level 2 home charger and Ford will cover the cost of standard installation.
Ready to take advantage of the savings? We can help you find the best EV lease deals in your area. Check out our links below to view offers on popular electric models in your area.
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports9 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway