In the wake of backlash against data centers drawing on power grids across the country, builders have turned to off-grid, private natural gas and solar installations. Referred to as the “shadow power grid”, this network of at least 47 data center power sources is billed by developers as an alternative to drawing on existing grid resources, trading increased power prices for a risk of increased local pollution. On Wednesday, it was reported that Amazon, Meta, Oracle, xAI, Google, OpenAI, and Microsoft would be pledging to supply their own power for data centers, further expanding this shadow grid.
Critics of the strategy claim that these data centers will increase local pollution and carbon emissions; one planned project in Texas will generate as much power as the city of Chicago uses. The shadow grid also allows companies to sidestep traditional regulatory requirements and replace expensive connectivity build-outs with co-located power sources. These projects also indirectly affect the existing grid, driving up prices for gas turbines (sold out through 2030) and for grid maintenance and installation services. Others, including the CEO of Eolian Energy, have criticized the shadow grid’s feasibility, saying builders are “trying to rush to market with a bunch of clankety old stuff that was headed to the scrapyard.”
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