The question explores whether major, gradual energy initiatives will drive the growth of the artificial intelligence sector.
In a surprising turn of events, tech giants like Google, Microsoft, and Amazon are delving into old-school energy sources in Pennsylvania, as the region grapples with its abundant natural gas reserves and stagnated hydropower generation.
President Trump recently summoned leaders from technology, energy, and finance to Pittsburgh, Pennsylvania, where discussions revolved around the potential of clean power. Amidst this, Google announced its commitment to funnel up to 3 gigawatts of clean power to data centers in the region.
Meanwhile, Microsoft unveiled plans to bring back a reactor at Three Mile Island for powering computing operations. This move comes after Amazon's recent acquisition of a nuclear-powered data center in Pennsylvania from Talen Energy.
However, the future of the Rural Energy for America Program (REAP) remains uncertain due to the Trump administration's cast of doubt. Kari Lydersen, a journalist, reports that the programme, which infused with an additional $2 billion through the Inflation Reduction Act of 2022, may face challenges under the current administration.
Investment firm Blackstone, on the other hand, plans to build data centers alongside fossil gas power plants in Pennsylvania. This move, along with plans by fossil fuel companies for gas-powered data centers, such as the Homer City Energy Campus project, suggests a mix of energy sources in the region's future.
The tech industry's shift towards traditional energy sources is driven by the need to find electricity for exponential growth. Despite the challenges, the three AI-energy plays in Pennsylvania are banking on big, old-school, slow-moving energy projects.
Google, in a strategic move, will work with Brookfield Asset Management to relicense hydropower plants in Pennsylvania for 20 years. This move follows decades of stagnation in the construction of major hydropower generators.
However, the path towards clean energy is not without its hurdles. Top-tier turbine suppliers have warned of multi-year backlogs for new gas plants, and only two new nuclear reactors have been started and finished in the last 30 years, way behind schedule and massively over budget.
Amidst this, the U.S. has been churning out gigawatts of new solar and battery installations, especially in Texas. This shift towards renewable energy sources offers a contrast to the tech industry's embrace of traditional energy sources in Pennsylvania.
Executives praised Trump's leadership at the summit in Pittsburgh, but the future of the region's energy landscape remains a complex, evolving narrative. As tech giants and energy companies navigate this landscape, they will undoubtedly face challenges and opportunities in equal measure.
