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Big tech and its data centers are upending the electric utility world. Data centers aren’t only demanding and using more and more power, but they are also changing the structure of the industry.

They are a force throughout the system behind the meter, in front of the meter, and as a driver for more nuclear (both fission and fusion), renewables and any carbon-free electricity. 

They are a hegemon to be reckoned with. They have tremendous financial resources, political influence and are certain of their role in reshaping the future with artificial intelligence.

Along the way, they are reshaping the electric utility industry:

• They provide endless demand for steady 24/7 power, and they are precise about the nature of that power: They are historically carbon-adverse, reluctant about fossil fuels.
• They are a force in the future technologies that will shape the utilities; nuclear, wind, solar and batteries. 

Note this: Batteries have gained a new essentiality. Not only do they undergird the utilities in times of stress and help them through the high-demand hours at the end of the day, but they also are incorporated into every data center, silently supporting the ability of the centers to operate, even during periods of power failure.

But batteries and their role in the U.S. electricity system need regulatory reform. They need to be recognized as separate components with their value and pricing determined according by the Federal Energy Regulatory Commission and state regulators.

Some utilities and the battery industry are lobbying for this reform — and the pressure is rising.

The role of big tech as generators is a threat to the old order. There is concern in some quarters that the big tech companies, in their hunger for green power, are buying up the output of wind and solar farms, and solar installations. 

The role of data centers and the reshaping of the electric utility industry by the big tech companies and their needs will be examined at the next United States Energy Association virtual press briefing on Wednesday, August 20, at 11 a.m. EDT.

As usual, a panel of senior journalists who write about energy will question a panel of experts. This time, the experts will be from the data centers, the big techs, and the utilities that serve them and are being transformed by them. 

The good and the bad are both bound to come up. PG&E is hoping that by serving small data centers, it can reduce rates, while others fear rates will have to rise with all of the new demand-driven construction.