Tech Giants Pursue Direct Power Plant Access Amid Grid Congestion Concerns
AP News
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Contributed by: Drex DeFord
Summary
Tech companies are increasingly looking to establish direct connections with power plants to meet their electricity demands, circumventing traditional grids and raising concerns about the fairness of resource allocation for other consumers. A significant case involves Amazon Web Services (AWS) seeking access to 960 megawatts of power from the Susquehanna nuclear plant in Pennsylvania, but the Federal Energy Regulatory Commission (FERC) has temporarily blocked the deal on procedural grounds. This delay is impacting tech companies' ability to expand their data centers in response to rising demand driven by advancements in cloud computing. For power providers like Talen Energy, these arrangements can be financially advantageous, as they allow for higher electricity rates.
