Rising Scrutiny of Data Centers Creates Opportunities for Utilities

Dow Jones
5 hours ago

1719 ET - Increased scrutiny of artificial-intelligence data centers by state governments creates opportunities for electricity utilities that can overcome political hurdles and independent power producers that can build projects, according to industry analysts at Siebert Williams Shank. "Greater political scrutiny may reduce realized [AI-driven power demand], delay timing and raise execution risk, but data centers that survive may place greater value on electricity physically deliverable at their location," the financial-services firm's analysts say in a report. This will reward power producers that can move beyond their traditional operator role and become developers of bespoke projects, the analysts say. "For utilities, the opportunity remains substantial, but the risk-sharing model is changing," they add. "Rising political concerns around the socialization of AI specific infrastructure and risks increase the need for cost allocation frameworks."

 

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