CEOs in the renewable energy sector believe the industry is at inflection point, as Big Tech seeks carbon-free energy to power electricity-intensive data centers.
But leaders in the clean energy industry argue that the sector is reaching a turning point, particularly as Big Tech firms such asseek clean energy to power data centers that are the backbone of the Internet and artificial intelligence applications. The economic argument for renewables has also strengthened, they say, as the price of solar modules and batteries has fallen.
As these trends collide, electricity demand could surge 20% by 2030 after more than a decade of stagnation, according to an April analysis by Wells Fargo. Data centers are expected to make up 8% of U.S. electricity consumption by the end of the decade — more than double their current share, Goldman Sachs said in April.
Shugar pointed to the massive number of renewable projects in the U.S. seeking connection to the power grid. Nearly 2,500 gigawatts of solar, wind and battery projects were requesting connection in 2023, almost double the entire installed capacity of the current U.S. power plant fleet, according to an
"The short story is we see data centers becoming an increasingly significant demand driver for renewables both from aggregate demand standpoint as well as an environmentally preferred source of energy," Shugar said.The U.S.
"It's kind of a maze, a labyrinth of a process," Sweezey said."We need to start proactively planning to deliver large scale transmission lines" to demand centers, he said. Historically, most utilities haven't done this type of planning, focusing instead on near-term reliability issues, the analyst said.The other challenge that renewables face is generating enough power to meet demand when sun and wind conditions are not at their peak.
John Zahurancik, president of Fluence's Americas region, said batteries are about 20 times cheaper than they were in the early 2000s. Batteries face a declining value curve in which each hour of storage is less valuable than the previous hour, Zahurancik said. But as energy demand increases, the value of each additional hour should rise, eventually making longer duration batteries more cost effective, he said.
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