AI to Skyrocket Datacenter Energy Use: Electric Buses & New Battery Tech

Can the U.S. power grid handle the explosive growth of data centers fueled by AI and large language models? This week, we shed light on a new report from the Electric Power Research Institute that forecasts data centers could consume up to 9% of total U.S. electricity by 2030. We explore the regional impacts, especially in Washington D.C. and Texas, and discuss the grid’s current struggle to integrate new generation assets efficiently. Moreover, we highlight the Oakland School District's pioneering move to go all-electric with its bus fleet, utilizing bidirectional chargers to contribute energy back to the grid, which could serve as a model for future vehicle-to-grid (V2G) initiatives.

But that's not all. We also take a global perspective with updates on China's leading EV battery maker Goshun, unveiling its groundbreaking Gemstone and Stellary batteries that promise incredible driving ranges and rapid charging times. Colorado's Xcel Energy is pushing the envelope with its V2X pilot project aimed at enhancing EV adoption and grid resilience. Meanwhile, California is making waves with its ambitious $6.1 billion plan to boost transmission capacity, supporting the state's renewable energy goals. Stay tuned until the end for a special announcement about next week's fundraising paddle through local swamps and rivers!

Transcript

Speaker 1: 0:00

Hi, I've got your energy stories for this, the first week of June 2024. A new report from the Electric Power Research Institute, epri, indicates that data centers could use as much as 9% of total US electricity consumption by 2030, driven by a surge in artificial intelligence and large language programming models, as well as internet queries using AI that use about 10 times the juice of your traditional Google search. Just this year, us data center load is forecast at 21,000 megawatts, up 2,000 megawatts from last year, and potentially soaring to 35 gigawatts 35,000 megawatts by 2030. Impacts will be highly regional, with areas like Dominion around Washington DC highly affected Texas as well, and will put further stress on a US power grid that even today cannot keep up with demand, largely being hampered by lengthy timelines associated with connecting new gen assets to power lines.

Speaker 1: 0:58

In California, the Oakland School District will be the first major US school district in the country to go all-electric with its buses. Third-party provider Zoom will own and operate a total of 74 electric buses and, perhaps most interestingly, operate bidirectional chargers capable of delivering 2,100 megawatt hours of energy back to utility Pacific Gas and Electric through an AI-enabled platform. As we've discussed here before, school buses are a great place for vehicle-to-grid V2G growth. There are about 500,000 school buses in the country that could be electrified and all US OEMs make V2G-capable school buses. Thomasbuilt even has a warranty that allows 360 megawatt hours per bus to be backfed to the grid and school buses run fixed schedules and take the summers off when we most need evening power.

Speaker 1: 1:49

Colorado utility Xcel Energy will work with V2G company Fermata Energy, as well as the City of Boulder, the non-profit Colorado Car Share and Boulder Housing Partners to develop a small but transformational so they say vehicle-to-everything or V, vtx, bidirectional electric vehicle charging pilot. The goal was to lower total costs of EV adoption. The project will look at bill impacts and the potential for improved resilience resulting from bidirectional charging and VTX systems. It will only deploy four 20kW Level 2 chargers and six Nissan Leafs, but Excel wants that data to determine how to more broadly integrate EVs into its grid. When parked in V2X mode, the Leafs will use the Fermata platform to use the battery to cut host buildings' peak demand while also managing the health of that battery. Although XL says it has quote no current plans to expand the pilot, unquote. Other VDX pilots and demonstrations were approved by the PUC in the utilities 2024 to 2026 transportation electrification plan.

Speaker 1: 2:53

My opinion, they're moving way too slowly. If the growth in electric demand is even a portion of what is expected, blame those data centers, we'll need all tools at our disposal to effectively manage it. Other companies, such as Zoom, are showing what can be done, so it's time for utilities to start putting their big boy pants on and get moving. Here In China, leading EV battery maker Goshun unveiled its all-solid-state battery called Gemstone and plans to start quote small quality production unquote by 2027. These batteries should take a vehicle about 600,000 miles over its lifetime. Goshen also launched its next-gen Stellary batteries that support about 375 miles of driving range in 10 minutes of charging. Meanwhile, both Geely and BYD are planning on plug-in hybrids that will offer 1,200 miles of range on a combined single gas tank and electric charge.

Speaker 1: 3:47

California's grid operator just approved a $6.1 billion plan to increase transmission, including 26 new projects to help add 85,000 megawatts of renewable capacity by 2035. Caiso also greenlit a project to tie the 550-mile Sunsea line into California's grid, a line that will carry 3,000 megawatts of wind power from New Mexico to Arizona, where a substation will further route it to California. Well, that's all for this week. Thanks for watching, and we'll see you again in two weeks, because next week I'll be paddling 72 miles through swamps and rivers on a local fundraiser. See you in two.