The surge in demand for digital services leads to the expansion of massive data centers.

The number of internet users worldwide has more than doubled since 2010, leading to an increase in data centers to support the growing demand for faster and more efficient web services.

"The digitization of our economy is beneficial, but it requires a significant amount of electricity, according to National Rural Electric Cooperative Association CEO Jim Matheson. Although we are not meeting the increasing demand for electricity in this country, we cannot turn back."

An onsite data center is a facility that houses IT infrastructure for running, building, and delivering applications, while cloud computing locations are often shared by multiple customers and used by some companies.

""Data centers are extremely energy-consuming and need a substantial amount of power to function, as stated by former Federal Energy Regulatory Commission Chairman Neil Chatterjee. Many regions across the country are witnessing an increase in the concentration of these facilities," according to Chatterjee."

Hyperscale data centers are run by companies such as Amazon Web Services, Google Cloud, and IBM Cloud. These service providers are the largest and are rapidly increasing in number.

"According to Matheson, data centers consume a significant amount of electricity, and when the electricity supply is limited, the costs will increase."

Nearly 2% of total U.S. electricity use comes from data centers, with hyperscales using as much power as 80,000 households. Out of the nearly 8,000 data centers globally, 900 are hyperscale and account for 37% of capacity.

"The surge in demand from data centers and the ancillary jobs they create around them led to inaccurate forecasts by some utilities, putting pressure on the grid."

Hyperscale data centers are most popular in the U.S. in Dallas, Chicago, Los Angeles, and Northern Virginia. Approximately 35% of all known hyperscale data centers are located in Virginia.

"Matheson stated that if you are in an area with sufficient transmission, you can handle some of the increased load. However, there is a limit to the capacity of an individual electric transmission line and the amount of power generation available."

The quick expansion in the region can be attributed to tax exemptions for computer equipment purchased by facilities, which are offered by Virginia's state government and some localities.

"Chatterjee stated that the utility will need to construct a substantial amount of transmission to sustain power delivery over the long term. They are worried about potential curtailments due to inaccurate forecasting of the significant surge in demand from the data centers' full operation."

As energy prices rise due to supply shortages, many hyperscale providers are investing in renewable energy projects. However, experts emphasize the need for more dependable infrastructure to maintain data center operations.

"Renewable energy can be a part of the portfolio, but it should not be the main source of power for data centers, as they operate 24/7 and the sun does not shine for 24 hours a day."

Some companies are placing data centers in the arctic to combat high energy costs and reduce energy use. The cool climate allows machines to function with natural air, reducing the need for energy-intensive cooling systems.

"If you want to find the future of clean energy, look to rural areas where there is less demand for power, according to Chatterjee. It's crucial to keep existing sources of generation running until their replacements are ready before retiring them, he said."