Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Monday, December 15
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Utilities»Study suggests utilities may be overbuilding and overspending to accommodate new data centers
    Utilities

    Study suggests utilities may be overbuilding and overspending to accommodate new data centers

    March 5, 20254 Mins Read


    Experts project energy demand will rise at unprecedented rates, increasing 21.5% in the next decade. Utilities are scrambling to connect new energy sources to the grid to meet that demand — including new fossil fuel generators, such as natural gas combustion turbines.

    But a recent study from Duke University’s Nicholas School of the Environment found that utilities can already handle the demand growth from data centers for most of the year without adding new energy generation.

    “Our system is prepared to serve that highest peak,” said Dalia Patino-Echeverri, an associate professor at the Duke Nicholas School of the Environment. “That means the rest of the year, the system is underutilized.”

    Federal regulators forecast 128 gigawatts of peak load growth by 2030. Duke Energy plans to build 3.6 gigawatts of natural gas generation by the early 2030s. However, current federal regulation mean those gas generators would run less than half the time unless the utility implements carbon capture technology.

    David Neal, senior attorney at the Southern Environmental Law Center, said even with federal rules, the generators wouldn’t serve ratepayers to their fullest potential.

    “Under Duke’s long-term plan, those new power plants would run less than 40% of the time within a decade anyway,” Neal said.

    He said that meant doing more to implement the carbon-free resources that state regulators have approved.

    Patino-Echeverri modeled U.S. energy demand hour by hour throughout the year. She expects electrical demand to increase as homes and transportation electrify and new data centers come online; however, utilities don’t need to build as much new energy generation.

    They just need to shift when those power requests happen during a couple of hours in the year.

    “If these loads were able to reduce consumption at those critical times, then we could accommodate them without triggering the need for this new generation or transmission,” Patino-Echeverri said.

    Utilities have predicted an unprecedented growth in energy demand over the next decade. The last time the U.S. scaled up energy generation in a comparable amount of time was during the mid-20th century. But, back then, utilities weren’t concerned about the effects of climate change even if they knew about them during part of that time.

    Patino-Echeverri said electrical demand would increase as homes and transportation electrify and new data centers come online. Utilities in the U.S. face other unique challenges, such as demands for greater reliability, less available land, and labor shortages, but they don’t need to build an equivalent amount of new energy generation. They just need to shift when folks draw power.

    Peak load refers to the time of the year when utilities must produce the most energy. That measurement determines how much total power the grid needs at any given time, plus a little extra to ensure reliability. The system is built to handle the largest load, meaning most days it has more power available than needed

    Peak load is also very short, lasting only a few hours. Patino-Echeverri’s research shows that if U.S. utilities can curtail just 0.25% of demand during that time, it would free up 76 gigawatts of power. Duke Energy Carolinas and Progress could free up 3.7 and 1.8 gigawatts of power if they displaced 1% of that peak load. That’s the equivalent of adding over five nuclear power plants to the grid.

    The study didn’t test solutions, but Patino-Echeverri said utilities have a few options. Cooling can account for up to 40% of a data center’s energy consumption. If data centers can cool more in the middle of the day, when the sun is shining directly on solar panels, they can reduce demand during peak hours when fewer renewable resources are available.

    If tech companies — for example — strategically distribute data centers, shift cooling times, and manage processing speed during peak hours, utilities won’t have to rush to supply as much energy.

    “We shouldn’t use these projections of unprecedented low growth as an excuse to decide not to retire all coal-fired power plants,” Patino-Echeverri said. “We shouldn’t rush to build a lot of natural gas unless necessary.”





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleScottish town named cheapest in the UK for first-time buyers
    Next Article ces entreprises françaises qui brillent grâce au bitcoin

    Related Posts

    Utilities

    Utilities Down, but not by Much on Defensive Bias – Utilities Roundup

    December 12, 2025
    Utilities

    AI Is Great for Utilities. It’s Also a Political Headache

    December 12, 2025
    Utilities

    Clitheroe: Huge United Utilities planned car park approved

    December 9, 2025
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    A Guide To Becoming A Property Developer

    December 31, 2000
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Property

    Is property investment still as safe as houses?

    July 2, 2025
    Finance

    Two staff exit Guernsey Finance after ‘serious events’

    November 24, 2025
    Bitcoin

    Bitcoin’s 13-year trend predicts when BTC will peak at $200,000

    July 28, 2024
    What's Hot

    Kevin O’Leary Demands Trump Slap China With 400% Tariffs

    April 9, 2025

    Lloyds Bank reviews impact of car finance commission ruling

    October 29, 2024

    Bitcoin Recovery Stalls As HODLers Apply Selling Pressure

    July 13, 2024
    Most Popular

    Bitcoin Flashes Inverted Triangle, Analyst Peter Brandt Explains What This Means

    August 13, 2024

    ETF Flows Reveal A Risk-On Reboot—With Bond Insurance – Capital Group Municipal High-Income ETF (ARCA:CGHM), iShares 0-3 Month Treasury Bond ETF (ARCA:SGOV)

    August 26, 2025

    Paramount Global ends ‘go-shop’ period as Bronfman bid withdrawn By Investing.com

    August 27, 2024
    Editor's Picks

    Bitcoin Price Prediction: JPMorgan Sees $170,000 Rally vs $28.3 Trillion Gold Peak

    November 17, 2025

    ​​Bitcoin Plunges 27% As $1 Trillion Wiped From Crypto Markets In Six Weeks​

    November 18, 2025

    Bitcoin flips Google’s $2.4T, Investors expect new all-time highs after $124k

    August 14, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.