Local backlash and reliability concerns are challenging the vision of an AI boom built quickly using large off-grid data centers. Why it matters: If giant projects stumble, trillions of dollars in AI investment and the industry's plans to rapidly expand data centers could be at risk. The big picture: In an effort to speed AI development, some companies are building data centers powered mainly by onsite generation rather than waiting years to connect to the electric grid. - There are 59 data centers with a combined capacity of about 90 gigawatts that plan to build their own power "behind-the-meter" using sources like gas turbines, generators and fuel cells, according to a report from research firm Cleanview. - A smaller subset is trying…
Technology that captures carbon emissions from power plants may finally get a breakthrough as deep-pocketed tech companies try to meet climate goals while powering the AI race. Why it matters: It could help make natural gas electricity cleaner, but it's long been too expensive. The AI boom could change that. Driving the news: At least five projects under consideration across the U.S. would capture carbon dioxide emissions from natural gas plants connected to data centers, according to company statements, news coverage and independent reports. - This includes Google's publicly touted project in Illinois, another one Google is reportedly behind in Nebraska, projects by ExxonMobil and Chevron and another by Meta that has the option to…
HOUSTON — A high-stakes fight is emerging as the AI boom accelerates: Should data centers plug into the grid, or operate as energy "islands"? Why it matters: The debate is shaping power flows and multibillion-dollar investments, as data centers rival entire cities in their electricity demand. Driving the news: Chevron said this week it's working on a deal to build a natural gas plant dedicated to a Microsoft data center in Texas — one of many signs that on-site power is gaining traction. - Roughly 30% of all planned data center power capacity is expected to be on site, according to a February report by Cleanview, a market intelligence firm — up from almost nothing a year earlier. "A lot of people look at that 30% figure from our…