US power struggle: How data centre demand is challenging the electricity market model

WoodMac says, "The US power industry is navigating a critical crossroads. National security and economic development imperatives require new power supplies to power AI data centres and advanced manufacturing. However, the scale of this new demand exceeds the industry’s supply capacity, and few measures are in place to prevent the erosion of grid reliability, particularly in regions that lack vertically integrated regulated utilities." If ever there was a time to throw open the doors of the electricity sector to all comers, now is that time.

That's the idea behind "Consumer Regulated Electricity" or CRE. CRE is state-level policy that would open the door to the creation of new, independent, competitive, and large-scale utilities. These new "CRE Utilities" would be starting from a clean sheet of paper and identify improvements and innovations that can never be discovered in the existing sector. CRE is one measure that states can put in place to prevent the erosion of grid reliability.

To learn more about CRE, send us a message here on LinkedIn, follow us here as well, and check out our website @ Advocates4CRE.org.

https://www.woodmac.com/horizons/us-data-centre-power-demand-challenges-electricity-market-model/