Data centers are increasingly becoming a critical risk to the electric grid, drawing attention from the U.S. government. Two recent federal reports highlight the growing concerns. In July, the Department of Energy’s (DOE) Secretary of Energy Advisory Board (SEAB) released its report, Recommendations on Powering Artificial Intelligence and Data Center Infrastructure. This report outlines how data centers, driven by the rise of AI, are impacting energy demand.

Additionally, on September 4, the National Telecommunications and Information Administration (NTIA) issued a Request for Comment (RFC) on how federal policies can support data centers in managing the rising demand from AI. The deadline for comments on NTIA’s RFC is November 4, 2024.

Key Takeaways from the SEAB Report

The SEAB report offers 16 recommendations for how the DOE can support the increasing power needs of data centers, especially with the growing influence of AI. Notable recommendations include:

• Collaborative AI Data Center: The report suggests creating a national AI data center where government labs, academia, and industry can collaborate on energy-efficient and flexible AI algorithms.
• Utility and Stakeholder Engagement: SEAB encourages the DOE to convene energy utilities, data center developers, operators, and other stakeholders to discuss solutions for current electricity supply bottlenecks.
• Grid Upgrade Costs: The report proposes considering model tariffs that require data centers to cover grid upgrade costs, helping to reduce the financial impact on other ratepayers.
• Backup Capacity for Public Needs: Revisiting Federal Power Act authorities to allow leveraging data center backup capacity during public emergencies is another key recommendation.
• State Support for Load Planning: Expanding DOE’s assistance to states in planning for future loads, particularly those related to data centers, is seen as vital for sustainable infrastructure growth.

NTIA’s RFC: Shaping Future Federal Policies for Data Center Infrastructure

In conjunction with the DOE, NTIA’s Request for Comment is focused on formulating federal policy to ensure resilient, secure, and sustainable data center infrastructure amidst soaring demand. NTIA seeks feedback on several challenges, including:

• Power Supply and Grid Access: How data centers are addressing electricity access challenges and potential innovative solutions.
• Data Center Modernization: The societal impacts—both positive and negative—of modernizing data centers or making new investments.
• Security for AI-Driven Data Centers: Requirements that AI-focused data centers should implement to ensure robust data security practices.
• Government’s Role: What actions, if any, should the Department of Commerce or the federal government take to foster data center development?

Comments for NTIA’s RFC are due by November 4, 2024. To contribute, visit the official RFC at NTIA’s website.

Join EIS Council’s Data Center Working Group

The Electric Infrastructure Security Council (EIS Council) has established a special working group dedicated to addressing the growing energy impact of data centers and their importance to Human Continuity. If you are interested in joining this crucial initiative, don’t hesitate to get in touch with [email protected].