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States Push Data Centers to Use Renewable Power Amid AI Energy Boom
Lawmakers and regulators are setting renewable benchmarks as data centers drive power demand that could add more gas-fired plants, advocates say.
As artificial intelligence drives record energy demand, the resulting construction of natural gas plants has alarmed climate advocates, who are pushing to ensure data centers utilize emissions-free sources instead.
Michigan, Oregon, and Minnesota enacted laws within the last 18 months requiring electric utilities to meet emissions-free energy standards by 2040, challenging data center developers to align with these goals.
Tech giants like Google are investing billions in zero-emissions projects, often persuading regulators to let them connect directly to the grid, as seen in Colorado's Xcel Energy program approved last year.
The Corporate Energy Buyers Association secured an agreement with Georgia Power, approved by state regulators, allowing members to build clean energy sources that connect directly to the regional power grid.
Legislation on New York Gov. Kathy Hochul's desk would mandate that large data centers source 90% of their energy from renewables by 2040, a move State Sen. Kristen Gonzalez deems realistic.