Renewable Energy Will Be Predominant Energy Source for Data Centers

( – Data Centers that are working on artificial intelligence may be predominantly run by renewable energy. The CEO of Nextracker, Dan Shugar, has said that the energy run on fossil fuels will be no more, and data centers will switch to renewable energy.

Shugar said that the low cost and rapid deployment of solar energy and the goals for climate change of Big Tech will push renewable energy to be the preferred power source for data centers. Nextracker is a successful company that builds systems that allow solar panels to track the sun.

He said that there are over fifteen hundred gigawatts of power-generating projects that connect to the electric grid and solar makes up about seventy percent of that. With wind power, there are more renewables seeking connection than there is room on the United States electric grid.

“There’ll be some gas, but we believe based especially on the data published by the DOE, the predominant energy source for these data centers is going to be renewable energy,” Shugar said.

Goldman Sachs estimates that the electricity demand from data centers will be more than double the United States’ power consumption before the end of the decade. There is concern about some of the giant data centers which could take up as much power as the average nuclear plant.
Said Shugar, “The clients that are developing these data centers, they have very serious sustainability goals and they don’t want their power coming from fossil.” He continued, “Basically renewable is lower cost than gas.”
There is currently a huge issue of backlogged renewables in the queue as the race to renewable energy continues and companies continue building. Maheep Mandloi, who works at Mizuho Securities as the director of clean energy research, said, “If you want to build a new renewable or any new project which connects to the grid, it will take at least two to three years to get all the interconnection approvals.”

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