Data Center Energy Use Threatens Clean Energy Goals in Washington and Across the Country
Lawmakers in Washington have been grappling with the energy demands of the state’s booming data center industry, which threatens to undermine efforts to eliminate carbon emissions from electricity generation. A recent report by The Seattle Times and ProPublica shed light on the challenges faced by states across the country as they seek to balance the economic benefits of data centers with the environmental impact of their energy consumption.
In 2022, Washington lawmakers expanded a tax break for the data center industry, but Gov. Jay Inslee vetoed a provision that would have required a study of the industry’s impact on the state’s electrical grid. Despite this setback, the industry has continued to grow, posing a significant challenge to Washington’s clean energy goals.
The situation in Washington mirrors similar struggles in states like Virginia, home to the nation’s largest data center market. Virginia once considered running data centers on carbon-emitting diesel generators during power shortages, sparking backlash from environmental groups. Dominion Energy, the utility that serves most of Virginia’s data centers, faces challenges in meeting the state’s clean energy goals amid rising demands driven by the industry.
Some Virginia lawmakers and the state’s Republican governor have proposed rolling back clean energy goals in response to the data center industry’s energy consumption. State Del. Richard “Rip” Sullivan Jr. proposed legislation earlier this year to tie data center tax breaks to energy efficiency and renewable resources, but the bill did not pass. However, the state authorized a study to examine the industry’s impact on the grid.
In Georgia, lawmakers passed a bill to halt the state’s data center tax break until an analysis of data center power use could be conducted. The state’s largest utility indicated that it would use fossil fuels to make up for an energy shortfall caused in part by data centers. Georgia Gov. Brian Kemp ultimately vetoed the tax break pause, highlighting the complex challenges involved in balancing economic growth with environmental sustainability.
Similar debates have taken place in Connecticut and South Carolina, where policymakers are grappling with how to address the energy demands of the rapidly growing data center industry. Countries like Ireland, Singapore, and the Netherlands have imposed restrictions on data center construction to alleviate strains on the power grid, emphasizing the need for a comprehensive approach to managing energy usage in this sector.
Experts like University of Washington professor Sajjad Moazeni emphasize the importance of considering the electricity impacts of data centers when formulating legislation. Moazeni’s research underscores the significant power consumption associated with artificial intelligence tools used in data centers, highlighting the urgent need for policies that promote energy efficiency and renewable resources.
As states across the country navigate the challenges posed by the data center industry’s energy demands, policymakers and industry stakeholders must collaborate to develop sustainable solutions that support economic growth while safeguarding the environment. The experience of Washington and other states offers valuable insights into the complex dynamics at play in the intersection of technology, energy, and environmental policy.
For more information, contact Lulu Ramadan at lramadan@seattletimes.com or visit The Seattle Times website for additional reporting on this issue.
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