ACEEE | American Council for an Energy-Efficient Economy
Oct 17, 2024
Turning Data Centers into Grid and Regional Assets: Considerations and Recommendations for the Federal Government, State Policymakers, and Utility Regulators
New policy brief explores how policymakers can help tackle data center energy consumption through flexible demand
Over the last two years, America’s demand for electric power has surged thanks to the resurgence of U.S. manufacturing and the emergence of—and demand for—generative artificial intelligence (GenAI), which relies on power-hungry data centers. The emergence of these two substantial new electric loads is unprecedented, and policymakers must address this dual challenge rather than viewing industrial growth and data center growth as competing priorities that require choosing one over the other.
A promising solution is to transform data centers into grid and regional assets that offer flexible demand powered by carbon-free electricity. These centers can reduce energy consumption during grid strain, ramp up usage during renewable energy surpluses, and store excess electricity to feed back into the grid, improving its reliability and resilience.
To unleash this demand-side potential, the federal government, state policy makers, and utility regulators need to take three immediate actions: (1) fill data and knowledge gaps in AI data center design and operation; (2) improve AI data centers’ energy efficiency and integration with regional infrastructure and the grid; and (3) develop policies that transform demand-side strategies.
Toward Best Practices for Industrial Innovation: Lessons from the Department of Energy’s Industrial Demonstrations Program
This paper highlights a central lesson for policymakers: Industrial innovation requires alignment across government programs (grants, procurement), financing mechanisms (tax credits, loans), and institutional capacity. When these three are backed by sustained commitment from the public sector, private industry, and external stakeholders, the transition from demonstration to deployment becomes viable.
Bridging the Equity Gap for Utility Energy Efficiency Programs
Utility energy efficiency programs have increased investment in low-income households, but significant gaps remain. This report examines spending and savings trends across 48 major U.S. utilities, identifies barriers to expanding low-income programs and highlights policies and program strategies that can improve energy affordability and equitable access to efficiency upgrades.
This report identifies pathways for India’s cement industry to decarbonise at a pace compatible with the national climate goal of net-zero emissions by 2070.
Home Energy Reports and Beyond: Meeting the Moment with Behavior-Based Energy Efficiency
Home energy report programs, in which utilities provide households with personalized insights into their energy use and tips to lower their bills, are a…
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