One of the most significant points of contention as the world moves to a more renewable-based energy generation mix is the need for grid modernization, allowing for higher power distribution and generation levels. Grid modernization will only become more critical as electric vehicles enter the market and data centers are built. After more than 15 years of consistent energy demand in the US, we are finally starting to see an increase. While power needs have remained relatively consistent since 2007, the energy demand of data centers, electric vehicle charging infrastructure, and domestic manufacturing will result in a compound annual growth rate for power demand of over 20% until 2030.
A report by McKinsey & Company on the growth of data centers found that the power required by data centers will triple current capacity by 2030. This reflects a rise from 3-4% of US power demand to 11-12%. This report expands on the constraints of data centers placed on them by the power sector. These include limitations on power sources, upstream infrastructure for power access, and power sustainability.
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