What's Happening
- US utilities and grid operators require data center developers to provide collateral, sign longer contracts, and pay engineering study fees, according to TechRadar.
- Developers submitted requests for 1,066 gigawatts of grid connections, a figure Wood Mackenzie estimates equals 83% of total US utility-scale generating capacity.
- Wood Mackenzie projects utilities will commit to serving 28% of the requested capacity.
- Exelon saw its high-probability data center load drop from 18 gigawatts to 11 gigawatts after the utility mandated collateral from developers.
Why It Matters
Grid infrastructure costs fall on all ratepayers. If utilities build substations for data centers that never materialize, household energy bills increase to cover the stranded assets.
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