Working at the intersection of climate, finance, and markets

e3:
- Based on a range of third party forecasts, data center demand could grow 15-70 GW by 2030
-Waves of load growth for the next 3 decades come from data centers, rising EV penetration, and then more broadly the electrification of everything
-Energy efficiency improvements

Table from Macquarie of public commentary from the outlook of US Utilities on Data Center Load Growth.

Same caveats as the prior note but shows where some of these numbers are coming from.

McKinsey: Energy transition facing challenges such as project commitments lagging targets. Key tech (renewables, EVs, CCUS, hydrogen) may struggle to reach final investment decisions. Economic uncertainty, policy gaps, and supply chain shock/issues hinder progress. Urgent action

DOE: Data center power demand is surging due to AI. Experts see potential for data centers to shift from passive consumers to active grid participants, offering load flexibility. Natural gas is a short-term solution while LT goals are still to accelerate clean tech deployment.

Data center rents fell 3% annually from 2013-2021 as tech giants gained leverage. Now, AI surge flips the script. North American rents for big tech tenants jumped 19% in first half of 2024. Vacancy rates hit record low of 2.8%, giving landlords pricing power.

Capex spending by the Magnificent Seven is at record-high levels - approaching $50 billion!

"Dominion Energy Inc. expects the time it takes to connect large data centers to the electric grid to increase by one to three years amid a surge in requests, bringing the total wait time to as long as seven years... The longer wait time applies only to large data centers that

Positive development. Tech-neutral, market-driven policies and an all the above energy policy is the way to go.

VP Harris reverses stance on fracking, says she won't ban it as president. Cites clean energy incentives as alternative path to climate goals. Move seen as crucial for