Existing nuclear power plants are best behind-the-meter option for data centers: NEI paper

Brian Martucci | Source: Utility DIVE | Posted 07/22/2024

Author and former PJM Interconnection executive Michael Kormos disputed claims that colocated data centers would increase power costs and erode reliability. Colocating new hyperscale data centers with existing nuclear power plants can significantly reduce project costs and delays by eliminating the need for new transmission infrastructure and grid interconnection studies, according to a paper released this month by the Nuclear Energy Institute.

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A recent paper by the Nuclear Energy Institute suggests that colocating new hyperscale data centers with existing nuclear power plants can lead to significant cost savings and reduced project delays by eliminating the need for new transmission infrastructure and grid interconnection studies. Michael Kormos, a former Exelon and PJM Interconnection executive, authored the paper, highlighting the advantages of using existing nuclear plants for their reliability, minimal carbon footprint, high generation capacity, and stable power output.

The data center industry's electricity demand in the U.S. is expected to double by 2030, with larger facilities consuming up to 1 GW of power for energy-intensive applications like artificial intelligence. While data center operators are increasingly exploring colocation partnerships with nuclear power plants, concerns have been raised about potential shifts in transmission costs to ratepayers. However, proponents argue that colocation can benefit both parties, providing carbon-free electricity to data centers and potential revenue streams for nuclear plants, ultimately supporting grid reliability and reducing curtailment rates for renewable resources.

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Existing nuclear power plants are best behind-the-meter option for data centers: NEI paper

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