Power-hungry data centers spur U.S. talks with Big Tech, energy chief Granholm says
The Hindu
Biden administration urges tech companies to invest in clean power generation to meet surging electricity demand.
President Joe Biden's administration is asking big technology companies to invest in new climate-friendly power generation to cover their surging demand, U.S. Energy Secretary Jennifer Granholm told Reuters.
The talks come as a surprising surge in electricity demand has been driven by the adoption of technologies like generative artificial intelligence that require power-hungry data centers. This development could complicate Biden's target of decarbonizing the power sector by 2035 to fight climate change.
“We've been talking with data companies. The large ones have commitments to net-zero and would like to see clean baseload power,” Granholm said in an interview with Reuters.
She said the administration had discussed the possibility that companies could band together to make use of small modular reactors for nuclear energy, and could simultaneously place orders to reduce costs.
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“If the tech companies are coming in and are going to pull clean power from the grid, they should bring the power with them,” she said.
"And so a lot of that conversation is happening right now among tech companies and utilities, tech companies and nuclear companies."
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