Winter storm increases demand for power in US data centers Alley
The largest U.S. power grid saw its prices rise sharply Sunday, as the demand for energy in a region that has?the largest concentration of data centers in the world? exceeded forecasts in the midst of a deep freeze gripping the majority half the nation. Dominion Energy territory in Virginia saw real-time wholesale prices of $1,800 for a?MWh as early as Sunday morning, up from $200 on Saturday. Virginia is home to the largest cluster of data centres in the world. These centers are used for artificial intelligence, and the rising demand and price of electricity in large swaths across the nation.
Winter Storm Fern, which swept parts of the U.S., caused a spike in demand late Saturday night.
PJM expects a record-breaking winter demand on Tuesday due in part to the electricity requirements of data centers. Dominion has said that the extended cold temperatures and heavy snow this week could be the largest winter event to impact the utility.
PJM forecasts a demand of 147.2 gigawatts which would surpass the current winter electricity demand record of 143.7 GW, set in January 2025.
Dominion did not respond to a request for comment on Sunday's price changes. According to PJM, at 10 a.m., the demand in the utility zone of the PJM area was about 23 gigawatts a hour, or about 5% more than originally forecast.
Wholesale electricity spot prices in the United States. Regional grids are struggling to meet the surging demand. If demand is higher than forecast, utility companies may be forced to pay higher spot prices for power in order to meet the needs of their residential and commercial customers.
Local distribution lines bring electricity to businesses and homes via regional grids. According to PowerOutage.us these local power lines are showing disruptions. Nearly 900,000 people were without power Sunday. More than 300,000 of them in Tennessee, and over 100,000 in each Mississippi, Texas, and Louisiana. Kentucky, Georgia Virginia, and Alabama were also affected. (Reporting by Tim McLaughlin, Editing by Liz Hampton and David Gregorio).
(source: Reuters)
