AI’s thirst for power presents major challenges to energy grid

With questions surrounding “behind the meter” for existing plants, former Kentucky Public Service Commission Chairman Kent Chandler explained there are growing discussions and interest in colocation with new generation.

This would likely involve building new gas plants or renewable energy sites, such as wind and solar farms, to power new data centers to avoid taking any existing electricity from the grid. 

“What I expect is that you’ll have people bring on gas plants, colocate them while waiting for the gas plant to get connected to the grid, and then the gas plant will get connected to the grid, and then that customer will choose whether on any particular hour they want to have the gas plant run for their benefit, or buy power from the grid,” Chandler said.