PTC'25 | Powering the Future: Tackling the energy crisis impacting US data centres

The escalating energy crisis is reshaping the landscape of data centre development across the United States.
Once a localised issue in Northern Virginia, Jonathan Beckham, a partner at Akerman LLP's Digital Infrastructure Group explains to The Tech Capital that the power supply challenge has now become a nationwide concern, forcing data centre operators to rethink site selection, financing, and infrastructure development.
Beckham delves into the critical role of power availability in site selection, emphasising the need for immediate confirmation of energy access before projects can proceed.
He also sheds light on how deepening relationships between data centre operators and utility companies have resulted in more complex negotiations and data centre operators becoming far more involved in the development of energy infrastructure.
These challenges have driven project costs to soar, with campus developments rising sharply into the billions when accounting for power infrastructure, including substations and transmission lines.
"A data centre project that may have been US$300 million in the past for a pretty substantial campus, now the cost could be US$1.2 billion," he reflects.
To navigate the new dynamics posed by the energy crisis, Akerman LLP has adapted its services to provide specialised legal and tax expertise, particularly in areas related to the Inflation Reduction Act and renewable energy projects.
Beckham highlights the firm's focus on regulatory knowledge, such as FERC compliance and state-specific utility frameworks, enabling clients to address power-related hurdles effectively.
Looking to the future, Beckham discusses potential alternative energy solutions such as nuclear and geothermal power.
While promising, these innovations remain long-term prospects, with projects like Google’s nuclear initiative not expected to deliver results until at least 2029.
In the meantime, data centre operators must grapple with immediate challenges posed by power shortages and rising development costs in an increasingly energy-constrained environment.
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