Data centers and utilities are caught in a paradox, and it’s driving up prices for everybody.
The exploding demand from data center developers has meant that utilities are working to get their hands on equipment to help serve the data centers — things like turbines, power lines and the transformers that transfer power from high-voltage lines to distribution centers.
But data centers are also trying to get a hold of the same equipment to power their operations, creating a surge of demand for these specialized parts while supplies remain limited.
“The entire system is trying to grow faster on the supply and the demand side, and we have a limited number of transformers we can crank out,” Josh Rhodes, a research scientist focused on energy with the University of Texas, Austin, said in a recent interview.
