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Power · Data centers2 min read

Biggest US power grid plans a March auction for data center electricity

The largest US grid operator plans a special March auction for new power capacity for data centers, if federal regulators approve new rules on who pays.

By the Dashline deskSource: Bloomberg Technology
Biggest US power grid plans a March auction for data center electricity
Photo: Victorgrigas, CC BY-SA 3.0

America's largest grid operator plans to hold a special auction in March to line up new power generation for data centers. There is a catch. It happens only if federal regulators approve revised rules about who pays for it.

What is planned

A grid operator manages the flow of electricity across a large region and makes sure there is enough supply to meet demand. This one is the biggest in the country. The March auction would be a special event meant to secure new generating capacity, which means the ability of power plants to produce electricity when it is needed. The goal is to meet demand from data centers, the large buildings full of computers that run online services.

Who it affects

Because the operator is the largest in the US, any change in its rules reaches a lot of customers. The open question is cost. Who pays for the power that data centers need could affect electricity bills for homes and businesses on this grid.

What is not known yet

The material available does not say how the costs would be split, what the revised rules contain, or how much capacity the auction would try to buy. It also does not say when regulators will decide. Without their approval, the March auction does not go ahead.

What happens next

The decision by federal regulators is the thing to watch. Their ruling on the payment rules will determine whether the auction happens and may shape who carries the cost of powering data centers.

The takeaway

Watch the federal regulators' decision on who pays, because it decides whether the March auction happens and may affect bills on this grid.

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