Electric Utilities Plot Bullish Course for EV Charging Infrastructure


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EV Charging Infrastructure Incentives are expanding as utilities fund public chargers, Level 2 networks, DC fast charging, grid-managed off-peak programs, and equitable access across Ohio, New Jersey, and Florida to accelerate clean transportation.

 

Key Points

Utility-backed programs funding Level 2 and DC fast chargers, managing grid demand, and expanding EV equity.

✅ Incentives for Level 2 and DC fast public charging stations.

✅ Grid-friendly off-peak charging to balance demand.

✅ Equity targets place chargers in low-income communities.

 

Electric providers in Florida, Ohio and New Jersey recently announced plans to expand electric vehicle charging networks and infrastructure through various incentive programs that could add thousands of new public chargers in the next several years.

Elsewhere, utilities are advancing similar efforts, with Michigan EV programs proposing more than $20 million for charging infrastructure to accelerate adoption.

American Electric Power in Ohio will offer nearly $10 million in incentives toward the build out of 375 EV charging stations throughout the company's service territory, which largely includes Columbus.

Meanwhile, the Public Service Electric and Gas Company (PSE&G), an electric utility provider in New Jersey, has proposed a six-year plan to support the development of nearly 40,000 electric vehicle chargers across a wide range of customers and sectors, said Francis Sullivan, a spokesperson for PSE&G.

And Duke Energy in Florida is installing up to 530 EV charging stations across its service area, as part of its Park and Plug pilot program, which will be making the charging ports available in multifamily housing complexes, workplaces and other high traffic areas.

"We are bringing cleaner energy to Florida through 700 megawatts of new universal solar, and we are helping our customers to bring clean transportation to the state as well," Catherine Stempien, Duke Energy Florida president, said in a statement. "We are committed to providing smarter, cleaner energy alternatives for all our customers."

The project in Ohio is making incentive funding available to government organizations, multifamily housing developments and workplaces, covering from 50 percent to all of the costs. The plan, to be rolled out in the next four years, aims to incentivize the development of 300 level-two chargers and 75 "fast chargers" capable of charging a car's battery in minutes rather than hours.

"I think what's interesting about what we're seeing now in the industry is that electric vehicles and electric vehicle charging are expanding beyond California, and like other Pacific Coast states," said Scott Fisher, vice president of marketing at Greenlots, maker of car chargers and software. Greenlots has been selected as one of the companies to provide the chargers for the AEP project.

California has occupied the lion's share of the electric vehicle market, making up about 5 percent of the cars on the state's highways. The U.S. market sits at about 1.5 percent. However, indications show the EV boom may be set to take off as more models are being rolled out, and prices are making the electric cars more competitive with their gas-powered counterparts. The group Securing America's Future Energy (SAFE) announced the one-millionth electric vehicle is on course to be sold in the United States this month.

In a statement, Ben Prochazka, vice president of the Electrification Coalition, an EV advocacy group, called this "a major milestone and brings us one step closer to reducing our transportation system's dependence on oil. This is a direct result of the tireless efforts by communities and advocates throughout the 'EV ecosystem.'"

In New Jersey, PSE&G's efforts -- which are part of the company's proposed Clean Energy Future program -- will not only focus on building out the charging infrastructure, but structure car recharging to control charging and encourage residents to charge their cars during off-peak times.

"For now, with a modest number of charging stations in the market, it's not a huge problem. But over time, as you're putting in many thousands of these stations, what you want to make sure is that those stations are operating in sync with state power grids, where you don't have people all charging at the same time at like 5 p.m. on a hot summer day," said Fisher.

PSE&G also plans to offer incentives to encourage the development of level-two chargers and DC fast-chargers, as well as "provide grants and incentives for 100 electric school buses and EV charging infrastructure at school districts in PSE&G's service territory," said Sullivan.

"PSE&G will also help fund electrification projects at customer locations such as ports, airports and transit facilities," Sullivan added, via email.

Utilities and transportation planners are also keeping the concept of equity in mind -- to ensure EVs are adopted by more than just the Tesla owner -- and will also focus on placing infrastructure in low-income areas.

"Ten percent of the stations will be in low income areas, defined by census blocks," said Scott Blake, a communications consultant at AEP in Columbus.

Duke Energy also announced 10 percent of the chargers it is installing in Florida will be in "income-qualified communities," according to a company press release.

 

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The Rise of Data Centers in Alberta

Alberta Data Centers fuel the digital economy with cloud computing, AI, and streaming, leveraging renewable energy and low-cost power; yet grid capacity, sustainability, efficient cooling, and regulatory frameworks remain critical considerations for reliable growth.

 

Key Points

Alberta facilities for cloud, AI, and digital services, balancing energy demand, renewable power, and grid reliability.

✅ Low electricity costs and renewables attract hyperscale builds

✅ Grid upgrades needed to meet rising, 24/7 workloads and cooling

✅ Workforce training aligns with IT, HVAC, and electrical roles

 

As Alberta continues to evolve its energy landscape, the recent surge in data center projects is making headlines. With companies investing heavily in this sector, Alberta is positioning itself as a key player in the digital economy. This trend, however, brings both opportunities and challenges that need careful consideration.

The Digital Economy Boom

Data centers are essential for supporting the growing demands of the digital economy, which includes everything from cloud computing to streaming services and artificial intelligence. As businesses increasingly rely on digital infrastructure, the need for reliable and efficient data centers has skyrocketed. Alberta has become an attractive destination for these facilities due to its relatively low electricity costs, abundant renewable energy resources, and favorable regulatory environment, according to a 2023 clean grids outlook that highlighted the province.

The influx of major tech companies establishing data centers in Alberta not only promises job creation but also contributes to the provincial economy. With investments pouring in, local businesses may see increased opportunities for partnerships, supplies, and services, ultimately benefiting the broader economic landscape, though proposed market changes could influence procurement and siting decisions.

Energy Demand and Infrastructure

While the growth of data centers can drive economic benefits, it also raises important questions about energy demand and infrastructure capacity, questions that have intensified since Kenney-era electricity changes in the sector. Data centers are energy-intensive, often requiring significant amounts of electricity to operate and cool their servers. As these facilities multiply, they will place additional pressure on Alberta's power grid.

The province has made strides in transitioning to renewable energy sources, with a defined path to clean electricity that aligns well with the goals of many data center operators seeking to reduce their carbon footprint. However, the challenge lies in ensuring that the electricity grid can meet the increasing demand without compromising reliability. The integration of more renewable energy into the grid requires careful planning and investment in infrastructure to handle variable supply and maintain a stable energy flow.

Environmental Concerns

The environmental implications of expanding data centers are also a point of concern. While many tech companies prioritize sustainability and aim for carbon neutrality, the reality is that increased energy consumption can contribute to greenhouse gas emissions if not managed properly, especially when regional export restrictions constrain low-carbon power flows. Alberta’s reliance on fossil fuels for a significant portion of its energy supply raises questions about how these data centers will impact the province's climate goals.

To address these concerns, there is a need for policies that encourage the use of renewable energy sources specifically for data center operations. Incentives for companies to invest in green technologies, such as energy-efficient cooling systems or on-site renewable energy generation, could help mitigate the environmental impact.

Workforce Development

Another critical aspect of this data center boom is the potential for job creation. Data centers require a range of skilled workers, from IT professionals to engineers and maintenance staff. However, there is a pressing need for workforce development initiatives to ensure that Albertans are equipped with the necessary skills to fill these roles.

Educational institutions and training programs must adapt to the changing demands of the job market. Collaborations between tech companies and local colleges can foster specialized training programs that prepare workers for careers in this evolving sector. By investing in workforce development, Alberta can maximize the benefits of data center growth while ensuring that its residents are prepared for the jobs of the future.

The Future of Alberta's Data Center Landscape

Looking ahead, Alberta’s data center landscape is poised for continued growth. The province's commitment to diversifying its economy, coupled with its abundant energy resources, makes it an appealing choice for tech companies. However, as the industry expands, careful consideration must be given to energy management, environmental impact, and workforce readiness, especially as Alberta changes how it produces and pays for electricity.

Regulatory frameworks will play a crucial role in shaping the future of data centers in Alberta, as the province pursues a market overhaul that could affect costs and reliability. Policymakers will need to balance the interests of businesses, environmental concerns, and the need for a reliable energy supply. By creating a supportive environment for innovation while addressing these challenges, Alberta can emerge as a leader in the digital economy.

The rise of data centers in Alberta marks an exciting chapter in the province's economic evolution. With the potential for job creation, technological advancement, and economic diversification, the opportunities are significant. However, it is essential to navigate the associated challenges thoughtfully. By prioritizing sustainability, infrastructure investment, and workforce development, Alberta can harness the full potential of this burgeoning sector, positioning itself as a key player in the global digital landscape.

 

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Illinois electric utility publishes online map of potential solar capacity

ComEd Hosting Capacity Map helps Illinois communities assess photovoltaic capacity, distributed energy resources, interconnection limits, and grid planning needs, guiding developers and policymakers on siting solar, net metering feasibility, and RPS-aligned deployment by circuit.

 

Key Points

An online tool showing circuit-level DER capacity, PV limits, and interconnection readiness across ComEd.

✅ Circuit-level estimates of solar hosting capacity

✅ Guides siting, interconnection, and net metering

✅ Supports RPS goals with grid planning insights

 

As the Illinois solar market grows from the Future Energy Jobs Act, the largest utility in the state has posted a planning tool to identify potential PV capacity in their service territory. ComEd, a Northern Illinois subsidiary of Exelon, has a hosting capacity website for its communities indicating how much photovoltaic capacity can be sited in given areas, based on the existing electrical infrastructure, as utilities pilot virtual power plant programs that leverage distributed resources.

According to ComEd’s description, “Hosting Capacity is an estimate of the amount of DER [distributed energy resources] that may be accommodated under current configurations at the overall circuit level without significant system upgrades to address adverse impacts to power quality or reliability.” This website will enable developers and local decision makers to estimate how much solar could be installed by township, sections and fractions of sections as small as ½ mile by ½ mile and to gauge EV charging impacts with NREL's projection tool for distribution planning. The map sections indicate potential capacity by AC kilowatts with a link to to ComEd’s recently upgraded Interconnection and Net Metering homepage.

The Hosting Map can provide insight into how much solar can be installed in which locations in order to help solar reach a significant portion of the Illinois Renewable Portfolio Standard (RPS) of 25% electricity from renewable sources by 2025, and to plan for transportation electrification as EV charging infrastructure scales across utility territories. For example, the 18 sections of Oak Park Township capacity range from 612 to 909 kW, and total 13,260 kW of photovoltaic power. That could potentially generate around 20 million kWh, and policy actions such as the CPUC-approved PG&E EV program illustrate how electrification initiatives may influence future demand. Oak Park, according to the PlanItGreen Report Card, a joint project of the Oak Park River Forest Community Foundation and Seven Generations Ahead, uses about 325 million kWh.

Based on ComEd’s Hosting Capacity, Oak Park could generate about 6% of its electricity from solar power located within its borders. Going significantly beyond this amount would likely require a combination of upgrades by ComEd’s infrastructure, potentially higher interconnection costs and deployment of technologies like energy storage solutions. What this does indicate is that a densely populated community like Oak Park would most likely have to get the majority of its solar and renewable electricity from outside its boundaries to reach the statewide RPS goal of 25%. The Hosting Capacity Map shows a considerable disparity among communities in ½ mile by ½ mile sections with some able to host only 100-200 kWs to some with capacities of over 3,000 kW.

 

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EU Smart Meters Spur Growth in the Customer Analytics Market

EU Smart Meter Analytics integrates AMI data with grid edge platforms, enabling back-office efficiency, revenue assurance, and customer insights via cloud and PaaS solutions, while system integration cuts costs and improves utility performance.

 

Key Points

EU smart meter analytics uses AMI data and cloud to improve utility performance, revenue assurance, and outcomes.

✅ AMI underpins grid edge analytics and utility IT/OT integration

✅ Cloud and PaaS reduce costs and scale data-driven applications

✅ Focus shifts from meter rollout to back-office and revenue analytics

 

Europe's investment in smart meters has begun to open up the market for analytics that benefit both utilities and customers.

Two new reports from GTM Research demonstrate the substantial investment in both advanced metering infrastructure (AMI) and specific customer analytics segments -- the first report analyzes the progress of AMI deployment in Europe, while the second is a comprehensive assessment of analytics use cases, including AI in utility operations, enabled by or interacting with AMI.

The Third Energy Package mandated EU member states to perform a cost-benefit analysis to evaluate the economic viability of deploying smart meters and broader grid modernization costs across member states. Two-thirds of the member states found there was a net positive result, while seven members found negative or inconclusive results.

“The mandate spurred AMI deployment in the EU, but all member states are deploying some AMI. Even without an overall positive cost-benefit outcome, utilities found pockets of customers where there is a positive business case for AMI,” said Paulina Tarrant, research associate at GTM Research and lead author of “Racing to 2020: European Policy, Deployment and Market Share Primer.”

Annual AMI contracting peaked in 2013 -- two years after the mandate -- with 29 million contracted that year. Today, 100 million meters have been contracted overall. As member states reach their respective targets, the AMI market will cool in Europe and spending on analytics and applications will continue to ramp up, aligning with efforts to invest in smarter infrastructure across the sector, Tarrant noted.

Between 2017 and 2021, more than $30 billion will be spent on utility back-office and revenue-assurance analytics in the EU, reflecting the shift toward the digital grid architecture, according to GTM Research’s Grid Edge Customer Utility Analytics Ecosystems: Competitive Analysis, Forecasts and Case Studies.

The report examines the broad landscape of customer analytics showing how AMI interacts with the larger IT/OT environment of a utility.

“The benefits of AMI expand beyond revenue assurance -- in fact, AMI represents the backbone of many customer utility analytics and grid edge solutions,” said Timotej Gavrilovic, author of the Grid Edge Customer Utility Ecosystems report.

Integration is key, according to the report.

“Technology providers are integrating data sets, solutions and systems and partnering with others to provide a one-stop shop serving broad utility needs, increasing efficiencies and reducing costs,” Gavrilovic said. “Cloud-based deployments and platform-as-a-service offerings are becoming commonplace, creating an opportunity for utilities to balance the cost versus performance tradeoff to optimize their analytics systems and applications.”

A diverse array of customer analytics applications is a critical foundation for demonstrating the positive cost-benefit of AMI.

“Advanced analytics and applications are key to ensuring that AMI investments provide a positive return after smart meters are initiated,” said Tarrant. “Improved billing and revenue assurance was not enough everywhere to show customer benefit -- these analytics packages will leverage the distributed network infrastructure, including advanced inverters used with distributed energy resources, and subsequent increased data access, uniting the electricity markets of the EU.”

 

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After alert on Russian hacking, a renewed focus on protecting U.S. power grid

U.S. Power Grid Cybersecurity combats DHS-FBI flagged threats to energy infrastructure, with PJM Interconnection using ICS/SCADA segmentation, phishing defenses, incident response, and resilience exercises against Russia-linked attacks and pipeline intrusions.

 

Key Points

Strategies, controls, and training that protect U.S. electric infrastructure from cyber threats and disruptions.

✅ ICS/SCADA network segmentation and zero-trust architecture

✅ Employee phishing drills and incident response playbooks

✅ DOE-led grid exercises and threat intelligence sharing

 

The joint alert from the FBI and Department of Homeland Security last month warning that Russia was hacking into critical U.S. energy infrastructure, as outlined in six essential reads on Russian hacks from recent coverage, came as no surprise to the nation’s largest grid operator, PJM Interconnection.

“You will never stop people from trying to get into your systems. That isn’t even something we try to do.” said PJM Chief Information Officer, Tom O’Brien. “People will always try to get into your systems. The question is, what controls do you have to not allow them to penetrate? And how do you respond in the event they actually do get into your system?”

PJM is the regional transmission organization for 65 million people, covering 13 states, including Pennsylvania, and Washington D.C.

On a rainy day in early April, about 10 people were working inside PJM’s main control center, outside Philadelphia, closely monitoring floor-to-ceiling digital displays showing real-time information from the electric power sector throughout PJM’s territory in the mid-Atlantic and parts of the midwest, amid reports that hackers accessed control rooms at U.S. utilities.

#google#

Donnie Bielak, a reliability engineering manager, was overseeing things from his office, perched one floor up.

“This is a very large, orchestrated effort that goes unnoticed most of the time,” Bielak said. “That’s a good thing.”

But the industry certainly did take notice in late 2015 and early 2016, when hackers successfully disrupted power to the Ukrainian grid. The outages lasted a few hours and affected about 225,000 customers. It was the first publicly-known case of a cyber attack causing major disruptions to a power grid. It was widely blamed on Russia.

One of the many lessons of the Ukraine attacks was a reminder to people who work on critical infrastructure to keep an eye out for odd communications.

“A very large percentage of entry points to attacks are coming through emails,” O’Brien said. “That’s why PJM, as well as many others, have aggressive phishing campaigns. We’re training our employees.”

O’Brien doesn’t want to get into specifics about how PJM deals with cyber threats. But one common way to limit exposure is by having separate systems: For example, industrial controls in a power plant are not connected to corporate business networks, a separation underscored after breaches at U.S. power plants prompted reviews across the sector.

Since 2011, North American grid operators and government agencies have also done large, security exercises every two years. Thousands of people practice how they’d respond to a coordinated physical or cyber event, including rising substation attacks that highlight resilience gaps.

So far, nothing like that has happened in the U.S. It’s possible, but not likely, according to Robert M. Lee, a former military intelligence analyst, who runs the industrial cybersecurity firm Dragos.

“The more complex the system, the harder it is to have a scalable attack,” said Lee, who co-authored a report analyzing the Ukraine attacks. “If you wanted to take out a power generation station– that isn’t the most complex thing. Let’s say you cause an hour of outage. But now you want to cause two months of outages? That’s an exponential increase in effort required.”

For example, he said, it would very difficult for hackers to knock out power to the entire east coast for a long time. But briefly disrupting a major city is easier. That’s the sort of thing that keeps him up at night.

“I worry about an adversary getting into, maybe, Washington D.C.’s portion of the grid, taking down power for 30 minutes,” he said.

The Department of Energy is creating a new office focused on cybersecurity and emergency response, following the U.S. government’s condemnation of power grid hacking by Russia.

Deterrence may be one reason why there has not yet been a major attack on the U.S. grid, said John MacWilliams, a former senior DOE official who’s now a fellow at Columbia University’s Center on Global Energy Policy.

“That’s obviously an act of war,” he said. “We have the capability of responding either through cyber mechanisms or kinetic military.”

In the meantime, small-scale incidents keep happening.

This spring, another cyber attack targeted natural gas pipelines. Four companies shut down their computer systems, just in case, but they say no service was disrupted.

 

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Massachusetts stirs controversy with solar demand charge, TOU pricing cut

Massachusetts Solar Net Metering faces new demand charges and elimination of residential time-of-use rates under an MDPU order, as Eversource cites grid cost fairness while clean energy advocates warn of impacts on distributed solar growth.

 

Key Points

Policy letting solar customers net out usage with exports; MDPU now adds demand charges and ends TOU rates.

✅ New residential solar demand charges start Dec 31, 2018.

✅ Optional residential TOU rates eliminated by MDPU order.

✅ Eversource cites grid cost fairness; advocates warn slower solar.

 

A recent Massachusetts Department of Public Utilities' rate case order changes the way solar net metering works and eliminates optional residential time-of-use rates, stirring controversy between clean energy advocates and utility Eversource and potential consumer backlash over rate design.

"There is a lot of room to talk about what net-energy metering should look like, but a demand charge is an unfair way to charge customers," Mark LeBel, staff attorney at non-profit clean energy advocacy organization Acadia Center, said in a Tuesday phone call. Acadia Center is an intervenor in the rate case and opposed the changes.

The Friday MDPU order implements demand charges for new residential solar projects starting on December 31, 2018. Such charges are based on the highest peak hourly consumption over the course of a month, regardless of what time the power is consumed.

Eversource contends the demand charge will more fairly distribute the costs of maintaining the local power grid, echoing minimum charge proposals aimed at low-usage customers. Net metering is often criticized for not evenly distributing those costs, which are effectively subsidized by non-net-metered customers.

"What the demand charge will do is eliminate, to the extent possible, the unfair cross subsidization by non-net-metered customers that currently exists with rates that only have kilowatt-hour charges and no kilowatt demand, Mike Durand, Eversource spokesman, said in a Tuesday email. 

"For net metered facilities that use little kilowatt-hours, a demand charge is a way to charge them for their fair share of the cost of the significant maintenance and upgrade work we do on the local grid every day," Durand said. "Currently, their neighbors are paying more than their share of those costs."

It will not affect existing facilities, Durand said, only those installed after December 31, 2018.

Solar advocates are not enthusiastic about the change and see it slowing the growth of solar power, particularly residential rooftop solar, in the state.

"This is a terrible outcome for the future of solar in Massachusetts," Nathan Phelps, program manager of distributed generation and regulatory policy at solar power advocacy group Vote Solar, said in a Tuesday phone call.

"It's very inconsistent with DPU precedent and numerous pieces of legislation passed in the last 10 years," Phelps said. "The commonwealth has passed several pieces of legislation that are supportive of renewable energy and solar power. I don't know what the DPU was thinking."

 

TIME-OF-USE PRICING ELIMINATED

It does not matter when during the month peak demand occurs -- which could be during the week in the evening -- customers will be charged the same as they would on a hot summer day, LeBel said. Because an individual customer's peak usage does not necessarily correspond to peak demand across the utility's system, consumers are not being provided incentives to reduce energy usage in a way that could benefit the power system, Acadia Center said in a Tuesday statement.

However, Eversource maintains that residential customer distribution peaks based on customer load profiles do not align with basic service peak periods, which are based on Independent System Operator New England's peaks that reflect market-based pricing, even as a Connecticut market overhaul advances in the region, according to the MDPU order.

"The residential Time of Use rates we're eliminating are obsolete, having been designed decades ago when we were responsible for both the generation and the delivery of electricity," Eversource's Durand said.

"We are no longer in the generation business, having divested of our generation assets in Massachusetts in compliance with the law that restructured of our industry back in the late 1990s. Time Varying pricing is best used with generation rates, where the price for electricity changes based on time of day and electricity demand and can significantly alter electric bills for households," he said.

Additionally, only 0.02% of residential customers take service on Eversource's TOU rates and it would be difficult for residential customers to avoid peak period rates because they do not have the ability to shift or reduce load, according to the order.

"The Department allowed the Companies' proposal to eliminate their optional residential TOU rates in order to consolidate and align their residential rates and tariffs to better achieve the rate structure goal of simplicity," the MDPU said in the order.

 

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‘Tsunami of data’ could consume one fifth of global electricity by 2025

ICT Electricity Demand is surging as data centers, 5G, IoT, and server farms expand, straining grids, boosting carbon emissions, and challenging climate targets unless efficiency, renewable energy, and smarter cooling dramatically improve.

 

Key Points

ICT electricity demand is power used by networks, devices, and data centers across the global communications sector.

✅ Projected to reach up to 20 percent of global electricity by 2025

✅ Driven by data centers, 5G traffic, IoT, and high-res streaming

✅ Mitigation: efficiency, renewable PPAs, advanced cooling, workload shifts

 

The communications industry could use 20% of all the world’s electricity by 2025, hampering attempts to meet climate change targets, even as countries like New Zealand's electrification plans seek broader decarbonization, and straining grids as demand by power-hungry server farms storing digital data from billions of smartphones, tablets and internet-connected devices grows exponentially.

The industry has long argued that it can considerably reduce carbon emissions by increasing efficiency and reducing waste, but academics are challenging industry assumptions. A new paper, due to be published by US researchers later this month, will forecast that information and communications technology could create up to 3.5% of global emissions by 2020 – surpassing aviation and shipping – and up to 14% 2040, around the same proportion as the US today.

Global computing power demand from internet-connected devices, high resolution video streaming, emails, surveillance cameras and a new generation of smart TVs is increasing 20% a year, consuming roughly 3-5% of the world’s electricity in 2015, says Swedish researcher Anders Andrae.

In an update o a 2016 peer-reviewed study, Andrae found that without dramatic increases in efficiency, the ICT industry could use 20% of all electricity and emit up to 5.5% of the world’s carbon emissions by 2025. This would be more than any country, except China, India and the USA, where China's data center electricity use is drawing scrutiny.

He expects industry power demand to increase from 200-300 terawatt hours (TWh) of electricity a year now, to 1,200 or even 3,000TWh by 2025. Data centres on their own could produce 1.9 gigatonnes (Gt) (or 3.2% of the global total) of carbon emissions, he says.

“The situation is alarming,” said Andrae, who works for the Chinese communications technology firm Huawei. “We have a tsunami of data approaching. Everything which can be is being digitalised. It is a perfect storm. 5G [the fifth generation of mobile technology] is coming, IP [internet protocol] traffic is much higher than estimated, and all cars and machines, robots and artificial intelligence are being digitalised, producing huge amounts of data which is stored in data centres.”

US researchers expect power consumption to triple in the next five years as one billion more people come online in developing countries, and the “internet of things” (IoT), driverless cars, robots, video surveillance and artificial intelligence grows exponentially in rich countries.

The industry has encouraged the idea that the digital transformation of economies and large-scale energy efficiencies will slash global emissions by 20% or more, but the scale and speed of the revolution has been a surprise.

Global internet traffic will increase nearly threefold in the next five years says the latest Cisco Visual Networking Index, a leading industry tracker of internet use.

“More than one billion new internet users are expected, growing from three billion in 2015 to 4.1bn by 2020. Over the next five years global IP networks will support up to 10bn new devices and connections, increasing from 16.3bn in 2015 to 26bn by 2020,” says Cisco.

A 2016 Berkeley laboratory report for the US government estimated the country’s data centres, which held about 350m terabytes of data in 2015, could together need over 100TWh of electricity a year by 2020. This is the equivalent of about 10 large nuclear power stations.

Data centre capacity is also rocketing in Europe, where the EU's plan to double electricity use by 2050 could compound demand, and Asia with London, Frankfurt, Paris and Amsterdam expected to add nearly 200MW of consumption in 2017, or the power equivalent of a medium size power station.

“We are seeing massive growth of data centres in all regions. Trends that started in the US are now standard in Europe. Asia is taking off massively,” says Mitual Patel, head of EMEA data centre research at global investment firm CBRE.

“The volume of data being handled by such centres is growing at unprecedented rates. They are seen as a key element in the next stage of growth for the ICT industry”, says Peter Corcoran, a researcher at the university of Ireland, Galway.

Using renewable energy sounds good but no one else benefits from what will be generated, and it skews national attempts to reduce emissions

Ireland, which with Denmark is becoming a data base for the world’s biggest tech companies, has 350MW connected to data centres but this is expected to triple to over 1,000MW, or the equivalent of a nuclear power station size plant, in the next five years.

Permission has been given for a further 550MW to be connected and 750MW more is in the pipeline, says Eirgrid, the country’s main grid operator.

“If all enquiries connect, the data centre load could account for 20% of Ireland’s peak demand,” says Eirgrid in its All-Island Generation Capacity Statement 2017-2026  report.

The data will be stored in vast new one million square feet or larger “hyper-scale” server farms, which companies are now building. The scale of these farms is huge; a single $1bn Apple data centre planned for Athenry in Co Galway, expects to eventually use 300MW of electricity, or over 8% of the national capacity and more than the daily entire usage of Dublin. It will require 144 large diesel generators as back up for when the wind does not blow.

 Facebook’s Lulea data centre in Sweden, located on the edge of the Arctic circle, uses outside air for cooling rather than air conditioning and runs on hydroelectic power generated on the nearby Lule River. Photograph: David Levene for the Guardian

Pressed by Greenpeace and other environment groups, large tech companies with a public face , including Google, Facebook, Apple, Intel and Amazon, have promised to use renewable energy to power data centres. In most cases they are buying it off grid but some are planning to build solar and wind farms close to their centres.

Greenpeace IT analyst Gary Cook says only about 20% of the electricity used in the world’s data centres is so far renewable, with 80% of the power still coming from fossil fuels.

“The good news is that some companies have certainly embraced their responsibility, and are moving quite aggressively to meet their rapid growth with renewable energy. Others are just growing aggressively,” he says.

Architect David Hughes, who has challenged Apple’s new centre in Ireland, says the government should not be taken in by the promises.

“Using renewable energy sounds good but no one else benefits from what will be generated, and it skews national attempts to reduce emissions. Data centres … have eaten into any progress we made to achieving Ireland’s 40% carbon emissions reduction target. They are just adding to demand and reducing our percentage. They are getting a free ride at the Irish citizens’ expense,” says Hughes.

Eirgrid estimates indicate that by 2025, one in every 3kWh generated in Ireland could be going to a data centre, he added. “We have sleepwalked our way into a 10% increase in electricity consumption.”

Fossil fuel plants may have to be kept open longer to power other parts of the country, and manage issues like SF6 use in electrical equipment, and the costs will fall on the consumer, he says. “We will have to upgrade our grid and build more power generation both wind and backup generation for when the wind isn’t there and this all goes onto people’s bills.”

Under a best case scenario, says Andrae, there will be massive continuous improvements of power saving, as the global energy transition gathers pace, renewable energy will become the norm and the explosive growth in demand for data will slow.

But equally, he says, demand could continue to rise dramatically if the industry keeps growing at 20% a year, driverless cars each with dozens of embedded sensors, and cypto-currencies like Bitcoin which need vast amounts of computer power become mainstream.

“There is a real risk that it all gets out of control. Policy makers need to keep a close eye on this,” says Andrae.

 

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