In AI arms race, San Antonio data centers wonder: Does CPS have the juice?

Madison Iszler, Sara DiNatale | Source: San Antonio Express News | Posted 07/29/2024

A new group has concerns about the city-owned utility's capacity to handle coming projects in data, other business. An under-the-radar group spearheaded by executives at companies that build and use data centers is pushing CPS Energy to consider whether it has enough juice to meet demand fueled by the rise of artificial intelligence.

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An under-the-radar group of companies involved in data center operations is urging CPS Energy in Texas to assess if it can meet the escalating demand for electricity driven by the rapid growth of artificial intelligence technology. The Energy Forward Alliance, composed of corporate customers and data center operators, is seeking information from CPS Energy regarding its infrastructure plans and capacity expansion to accommodate upcoming projects. The surge in power requirements for AI computing poses challenges to the already strained power grids in Texas and elsewhere.

Data centers are projected to consume a significant portion of U.S. electricity generation by 2030 due to the escalating demand for AI computing. The coalition is trying to address the tension between the pressing need for more power to support expanding technology capabilities and data center constructions, and the grid's capacity limitations. As companies rush to build data centers and leverage AI technology, concerns are growing about the ability of electric companies to keep up with the escalating demand, prompting collaborative efforts like the Energy Forward Alliance to work with utilities to address the upcoming challenges.

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Source Link: https://www.expressnews.com/business/article/cps-energy-data-centers-texas-ercot-industry-19594547.php

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In AI arms race, San Antonio data centers wonder: Does CPS have the juice?

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