digital infrastructure power consumption

Massive 10-Gigawatt AI Datacenter in Ohio

The rapid expansion of hyperscale data infrastructure in Ohio driven by a public–private partnership between American Electric Power and SoftBank Group is poised to fundamentally reshape the state’s electricity market. While the development of a 10-gigawatt data center complex represents economic growth and technological investment, it also introduces unprecedented pressure on the state’s already strained energy supply, with direct implications for electricity pricing. To understand the scale, consider that Ohio’s peak electricity demand was approximately 9.4 GW in 2023.… Read More »

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PJM Capacity Auction Set to Make Electricity Prices Rise for 2026

Electricity bills are set to increase once more following the latest PJM Capacity Auction for 2026, which showed a 22% jump in capacity charges. This adds to the steady rise in electricity costs across the 13 state PJM region—including New Jersey, Pennsylvania, Maryland, Washington DC, Ohio, Indiana, and Illinois—where rates have already nearly doubled since 2020. In July 2024, PJM held its Base Residual Auction (BRA) for the year 2025/2026, revealing a dramatic surge in capacity prices—9 to 10… Read More »

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The US is facing unprecedented load growth. Here’s how we ensure resource adequacy

Adding sufficient resources fast enough to reliably meet the growth will require an array of demand- and supply-side resources as well as stronger transmission interconnection planning. The U.S. electric system is under more pressure than ever before. In order to meet the challenges of unprecedented growth in electricity demand from data centers, re-shoring and other uses, the U.S. electricity grid will have to expand more than five times faster than in the previous two decades. All regions of the… Read More »

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US electricity demand will grow 50% by 2050, electrical manufacturer study finds

Data centers and transportation electrification will drive U.S. electricity demand about 2% higher each year for the next quarter century, according to a new analysis completed for NEMA. Driven by data centers and transportation electrification, U.S. electricity demand will increase 2% annually and 50% by 2050, the National Electrical Manufacturers Association said in a study published Monday. Improvements to energy efficiency will mute some potential demand gains, leaving the electrical manufacturing group’s projections “somewhere in the middle” compared with other recent studies, NEMA… Read More »

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State Renewable Energy Portfolio Standards and Goals

Introduction Renewable Portfolio Standards (RPS) require that a specified percentage of the electricity utilities sell comes from renewable resources. States have created these standards to diversify their energy resources, promote domestic energy production and encourage economic development. Renewable energy policies help drive the nation’s $269 billion market as of 2022, for wind, solar and other renewable energy sources. These policies can play an integral role in state efforts to diversify their energy mix, promote economic development and reduce emissions.… Read More »

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Why Electricity Prices Are Soaring in Blue States

Why Electricity Prices Are Soaring in Blue States Over the past two decades, the divergence in electricity rates among U.S. states has grown increasingly stark. While in 2004 the average residential electricity rate in the five most expensive states was only twice as high as in the five most affordable states, today it is 2.6 times higher. This widening gap reflects the growing differences in state approaches to energy production, regulation, and climate policy, which have created distinct regional… Read More »

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Why Prices Soared in a Recent Auction Held by a Major Electric Grid Operator

Why Prices Soared in a Recent Auction Held by a Major Electric Grid Operator Prices soared in the market that pays electricity generators to be available to meet future demand in the PJM Interconnection, prompting policymakers, regulators, and researchers to debate the potential causes of increasing prices, along with solutions. This summer, you may have seen some buzz around the PJM Interconnection, the regional transmission organization that manages the electric grid in 13 states in the Midwestern and eastern United States, along with Washington,… Read More »

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Texas power demand breaks all-time record amid searing heat, grid operator reports

Texas power demand breaks all-time record amid searing heat, grid operator reports  Demand for power in Texas smashed an all-time record Tuesday as homes and businesses cranked their air conditioners in response to searing heat. With much of the state under an excessive heat warning, demand reached 85,559 megawatts late Tuesday afternoon, said a spokesperson for the Electric Reliability Council of Texas, which runs the state’s grid. That topped the previous record of 85,508 set in August 2023. Widespread power outages… Read More »

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China’s Solar Output is Surging but Coal is Still King

China’s Solar Output is Surging but Coal is Still King Coal currently accounts for almost two-thirds of China’s power generation. Kemp: In July 2024, Solar and hydro reached record output in China. Coal, it seems, will remain king in China’s energy mix for the observable future. China recently recorded record electricity consumption that was largely met by equally record production of hydropower and solar. Yet coal remained the country’s dominant source of electricity. Giving that up would be one… Read More »

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