AXIOS (Amy Harder) - AI boom drives clash between grid power vs. energy "islands"
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…