Tech Companies Request Sufficient Electricity from NextEra to Power Whole Cities

Technology Firms Seek Massive Power Supplies for Data Centers

Desperation among technology companies to develop large-scale data centers in the US is leading them to seek assistance from clean-energy giant NextEra Energy Inc. The firms are requesting that NextEra find locations with enough electricity to support entire cities.

According to John Ketchum, CEO of NextEra, companies have approached them seeking sites capable of accommodating 5 gigawatts of demand. To put this into perspective, that amount of power is equivalent to the energy needed to power the city of Miami. This significant energy demand, akin to the output of five nuclear reactors or enough to supply nearly 3 million homes, would necessitate a combination of new wind and solar farms, battery storage, and a grid connection.

The growing power consumption in the US is largely driven by the increasing need for data centers that support artificial intelligence, high-speed streaming, and remote work. Additionally, the upsurge in domestic manufacturing and the electrification of vehicles and other sectors are contributing to this rise. The surge in demand is propelling a boom in clean-energy generation, though it also prompts plans for new fossil-fuel plants, which could complicate climate objectives.

This surge in demand has even led NextEra to mull over the possibility of restarting the Duane Arnold nuclear plant in Iowa, which was shut down in 2020. The plant's closure followed the exit of its largest customer from a power-purchase agreement. Since 2013, over a dozen US reactors have closed as operators found it hard to compete with the cheaper power generated from natural gas and renewables. However, the spike in consumption has revived discussions about reopening some of these reactors. Ketchum disclosed that there have been inquiries from potential data center clients who might be interested in the 600-megawatt Duane Arnold reactor.

Ketchum mentioned he would consider the reactor's reopening if it could be done safely and within budget constraints. He anticipates an almost 40% increase in US power demand over the next two decades, contrasting with a mere 9% rise over the past 20 years. Renewable energy is expected to cater to most of this consumption boost due to the higher costs and logistical challenges associated with new gas-fired plants. Adding battery storage to wind and solar farms can make these renewable sources nearly as reliable in providing continuous power as fossil fuels are.

NextEra is the world's largest developer of wind and solar energy outside government-backed entities, following only the major Chinese state-owned companies. The company boasts a pipeline of about 300 gigawatts of renewable and storage projects.