Patrick Carr, Executive Vice President and Electric Business Unit Leader of ENTRUST, dives into data centers, their challenges, and what the future means for ENTRUST Solutions Group.
Transmission owners are facing unprecedented challenges in managing the enormous power demands created by data centers. This has created a competitive landscape for utilities seeking to attract these high-load customers to their markets and meet their substantial electricity needs. ENTRUST’s EN Engineering assists with various aspects of this challenge, including conducting transmission interconnection studies, and providing engineering design services for transmission lines and substations to facilitate these connections. Our expertise spans multiple areas to support utilities in accommodating these significant new power demands.
Some of the challenges posed by recent load interconnection needs stem from the extraordinarily large size of these loads. These loads are so substantial that utilities are now required to interconnect them into high-capacity transmission lines. In a first for the US, some utilities are even constructing 765 kV transmission lines. The nature of the loads we are currently encountering has evolved significantly, necessitating these unprecedented changes in our utility infrastructure.
One of the most distinctive challenges now facing transmission interconnection planning is adjusting to this higher voltage class directly. The challenge is not only the availability of high voltage classes for new projects like data centers but also whether there is sufficient generation capacity nearby. It is crucial to ensure that there is not only a transmission interconnection point available but also that the Regional Transmission Organization (RTO) has enough load capacity in the area to handle these requests.
Designing transmission lines for 765 kV involves developing new types of structures, insulators, and possibly even new cables and conductors. This represents a significant shift for an industry that typically adheres to rigid standards. Additionally, the location of the facility plays a crucial role. While high voltage classes like 765 kV are usually found in rural or long-range areas connecting generation sites, siting a facility near an urban center presents unique challenges. Choosing the right site is critical not only for ensuring that the facility fits into the existing landscape but also for aligning with the surrounding electrical infrastructure.
Furthermore, the environmental considerations, as well as the siting and permitting processes for these facilities, can be complex. These factors, combined with the intricate requirements of transmission line design, pose distinct challenges in ensuring the successful deployment and operation of these high-voltage installations. Designing transmission and substation infrastructure for large-scale facilities like data centers involves significantly larger structures and equipment to meet heightened demands. This necessitates a more creative engineering approach. The complexity and demands inherent in designing for densely populated environments mean that engineering must be both innovative and precise to successfully accommodate the specific needs of each location and its infrastructure.
It is crucial for customers requesting interconnections to fully understand the size and scope of their needs. Often, what customers initially request—a gigawatt of load, for instance—might be significantly higher than their actual daily demand, which could be closer to 500 kW. This discrepancy can lead to unnecessary costs, since utilities do not want to build infrastructure for a load that turns out to be much smaller than anticipated.
Effective communication between data center suppliers, utilities, and consulting firms involved in these projects is vital to ensure all parties fully understand the project requirements. Before delving into the specifics of infrastructure design, it is important for all parties to align on the project’s scope, schedule, and budget, and clarify who will bear the various costs. While the technical aspect of designing lines and substations is not overly complicated, the challenge lies in appropriately sizing and timing the project to meet financial expectations. This might involve ‘value engineering’ to find a solution that satisfies customer needs while accelerating project completion.
Regional Transmission Organizations (RTOs) are primarily concerned with how facilities operate during peak load demand scenarios, particularly in extreme weather conditions such as days exceeding 100 degrees Fahrenheit. On such days, facilities like data centers, which require significant heating and cooling, may use maximum power. This surge in consumption can impact the regional power supply, affecting residential customers and overall safety.
RTOs must also address the challenges that arise as utilities aim to attract these high-energy facilities to increase their load and revenue. This influx can strain the regional systems, especially as RTOs work to phase out traditional power generation like coal and replace it with renewable sources and new technologies like solar, wind, and battery storage. The ongoing retirement of conventional power plants, coupled with an increasing load, continually escalates the stress on these systems.
In today’s world, there is a debate on whether a data center that supports AI is considered a critical load or if it can be disconnected during emergency situations where lives are at risk. For example, if a Google AI data center goes offline, it could pose a risk to public safety. However, regional transmission organizations (RTOs) may need to prioritize electricity for critical medical equipment in homes, such as ventilators. Data centers are integral to many aspects of daily life, raising the question of their critical status.
The discussion extends to how these data centers manage power during peak loads. Should utilities mandate that data centers have their own load shedding systems, or should they develop robust onsite generation to support a significant portion of their load independently? This decision impacts whether data centers rely solely on external power supplies or take a more self-sufficient approach.
Utilities generally have a solid plan for addressing infrastructure needs. However, the challenge lies in constructing transmission facilities quickly enough to meet the demands of data center clients. It is also important to mention the CHIPS Act, a federal funding program established in 2022, which has already allocated $23 billion to 14 projects across the U.S. for building data centers and chip manufacturing facilities. This influx of federal money puts significant pressure on utilities, especially in areas like Taylor, Texas, near Samsung’s headquarters, and around Intel’s locations in Oregon and Ohio. In Ohio, for instance, Intel has not only completed a new plant but is already expanding it with an additional $8.5 billion investment less than a year after opening. This level of spending underscores the intense financial dynamics at play when federal funds are involved.
ENTRUST aims to support transmission owners in managing the increasing demands of data centers, through helping in both transmission planning and traditional engineering and design. Additionally, we provide support to companies looking to construct these facilities, serving as a bridge between them and utilities. This includes helping companies like Intel with owner’s engineer services, managing utility relationships, and understanding load sizing calculations. We also assist TOs and RTOs in addressing the impacts of these developments. As the AI and microchip industries evolve, ENTRUST is committed to being a consistent support for our customers, now and in the future, including supporting onsite generation initiatives.
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