Utility Dive•8 days ago
Recalibrating the social license for AI infrastructure in the United States
Key Takeaway
Data center developers and large power consumers must proactively address grid impacts and public concerns as regulators prepare to implement new rate structures that penalize grid stress and reward flexibility.
AI Summary
- •Data center developers face increasing public backlash, necessitating strategies for "economic reciprocity" to maintain their social license to operate.
- •Utilities and regulators are urged to implement new rate structures that penalize grid stress and incentivize grid flexibility.
- •This shift implies potential for higher operational costs for inflexible data centers and creates opportunities for those integrating flexible load management or local generation.
Topics
capacity-marketdatacenterfercinterconnectpolicystoragetransmission
Article Content
To counter a public backlash, data center developers must embrace economic reciprocity while utilities and regulators must design rates that penalize grid stress and reward flexibility, write Fred Bailey of Gideon Arktos and Frank Willey at the Atlantic Council.