Data Center Average Capacity Utilization Rate Assumption
"There’s a widespread perception that data centers operate 24/7/365 at near-maximum demand, consuming electricity at a constant clip with little variability." And yet as the table below from the linked post (https://www.powerpolicy.net/p/the-puzzle-of-low-data-center-utilization) shows, estimates vary widely. We shouldn't be surprised by that given the relative infancy of the hyperscale and AI businesses. Their operational characteristics are still evolving. As the variation illustrates, the bigger the hyperscaler, the bigger the potential for utility and RTO overspending. That kind of risk is appropriate in the private investment world. However in the regulated electricity world, the risk associated with the demand forecasts falls less on private investors and more on captive ratepayers, i.e., ordinary citizens. We need to give the hyperscalers a better way out of the regulated sector, one where they benefit by getting access to faster development and greater innovation. That's where "Consumer Regulated Electricity" (CRE) comes in.
CRE is a state policy proposal which would enable private investors to build new, independent, competitive, and large-scale utilities focused on the hyperscalers. Because "CRE utilities" would be new, they can build for hyperscalers and the 21st century. Because CRE utilities would be independent, they won't be locked into standards and operational approaches that were developed decades ago. Because CRE utilities would be competitive, they will be forced to be highly creative and innovative. Because CRE utilities would be large-scale, they can hope to approach the cost, reliability, and environmental footprint of regulated utilities and grids. I wouldn't be surprised to see CRE utilities surpass regulated utilities and grids on all dimensions knowing that opening the door to innovation where it hasn't been possible in a century can bring forth unimaginable wonders.
https://www.linkedin.com/feed/update/urn:li:activity:7375588025407500288
