Data centers are in high demand as the need for data storage and technological innovations like AI gain popularity. A data center, as the name implies, is a physical space to host IT infrastructure and store data.[1] Most modern data centers are public cloud data centers, and there are two main types. The first are large hyperscale data centers, which are run by the major providers of cloud services like IBM Cloud, Google Cloud Platform, and Amazon Web Services. The second are edge data centers, which are the basis of edge computing and are utilized for data-intensive workloads like machine learning, large-scale data analytics, and AI. Any type of data center consists of the same components: servers, data storage systems, interconnecting networks, and power supplies like batteries and generators. Both are in extreme demand and are being constructed at a rapid pace all over the country.

Data centers receive power from two types of electrical current. Alternating current (AC), which is the standard, is commonly used because it easily integrates into an existing electrical grid, and because it allows power distribution over long distances. Direct current (DC), which often provides backup power during outages, is becoming more widely used because of its efficiency and cost-effective power delivery, especially in larger hyperscale data centers. Both alternating and direct currents are transmitted across long distances from power plants through high-voltage transmission lines and then distributed over utility lines to the data center.[2]

Demand for Power

Both hyperscale and edge data centers require extreme amounts of energy. A small data center made up of about 2,000 servers typically uses about 5MW of power, while a hyperscale data center consisting of tens of thousands of servers can use up to 100MW. In 2022, data centers in the US consumed approximately 460 terawatt-hours (TWh) of electricity, which is more than the national energy consumption for multiple countries for the same year.

Projections estimate that this number will rise to 1,000 TWh in 2026[3]. Furthermore, Goldman Sachs predicts that data center power demand will grow 160% by 2030, largely because of the rapid growth of AI-driven workloads that require data centers.[4] The power needs of data centers are expected to go from 3-4 percent of total US power demand to 11-12 percent in 2030, from a demand of 25 GW in 2024 to over 80 GW in 2030.[5]

The Dallas-Fort Worth area in Texas is the second-largest data center market in the country and is a prime example of load growth as a result of data center development. Since 2022, 300 MW of power supply has been built, representing a 25 percent year-over-year increase.[6]

This extremely high energy demand by data centers is more than our current grid can handle. As the number of data centers increases, so does the need for energy and load growth. The power grid must evolve to meet these needs. Current transmission lines must be updated, and new transmission lines must be created. As technology rapidly evolves, it is limited by an outdated electrical grid. Regions like Silicone Valley are finding their data center progress limited by a lack of transmission capabilities. Providing data centers with the power they need would require over $500 billion of investment in data center infrastructure alone.

Demand for Reliability

The need for new transmission lines to support the rapid development of data centers is an opportunity to construct a more resilient and reliable grid that supports access to energy for all customers. Because of the sheer amount of energy required by data centers – and the reliance of customers and innovation on this energy – it is absolutely essential that data centers receive the most resilient and reliable electrical energy possible. Data center downtime due to power outages or failures is extremely costly to both data center providers and customers. Additionally, to successfully develop and implement new technologies like AI, the electrical grid surrounding data centers must be able to hold and reliably deliver the increased demand for energy. This is especially crucial as the frequency and strength of extreme weather events due to climate change is only expected to increase.

Operators and architects are already working to increase the resilience of the data centers’ systems themselves against the effects of climate change through air and liquid cooling systems, humidity control, backup generators, and fire prevention equipment. But there must also be more attention paid to the resilience and reliability of the distribution and transmission lines that carry essential energy from energy sources to data centers. This would be best achieved by undergrounding both distribution and transmission energy infrastructure.

Underground distribution lines are considerably more resilient than those above ground. They are protected safely from floods, wildfires, and high winds, while overhead lines are extremely vulnerable to extreme weather and other above-ground elements. In fact, underground lines are 97 percent less likely to fail during hurricanes, which is essential as climate change increases the frequency and severity of these storms. Because these lines consistently perform better during all types of weather, contributing to fewer outages and disasters such as wildfires, underground distribution wires are also more reliable than aboveground lines, delivering more consistent electricity to data centers. Underground lines experience an overall 73.9 percent fewer power outages, resulting in a net 60.5 percent less downtime.

Transmission lines for data centers are also better suited underground. Since data centers require high amounts of energy, they would best benefit from underground HVDC, or high voltage direct current, lines. HVDC lines are typically used for long distance bulk power transfers because they are cost effective and reliable. There is a common misconception that undergrounding transmission infrastructure is significantly more expensive than overhead transmission and, while some IOUs may consider undergrounding distribution lines, many still believe that underground transmission is not feasible. As technology has developed, buried HVDC costs have decreased and are now competitive with the costs of traditional AC overhead transmission infrastructure. A newly published Environmental Defense Fund (EDF) study highlights how HVDC lines, known for their efficiency in long-distance bulk power transfer, are becoming a new standard for grid reliability and renewable energy integration¹. These types of lines would be crucial to expanding transmission nationwide. According to a Next-Gen Highways Feasibility study, the use of buried HVDC transmission infrastructure can generate $150 billion of societal value due to the reduced permitting and siting timeline associated with undergrounding.

So far, a pressing challenge of installing new transmission infrastructure is the time it takes to secure right-of-way and necessary permits. However, initiatives like Next-Gen Highways and SOO Green are proposing to utilize co-location strategies to site energy infrastructure with linear transportation corridor right-of-way like highways and railways to accelerate the process. This strategy has already proven successful in states like Wisconsin and New York.

Furthermore, when HVDC transmission lines are placed underground, they experience the same increase in resilience and reliability as distribution lines. Therefore, undergrounding transmission lines would prevent risks associated with climate change and cascading failures, which occur when a small transmission line failure causes the collapse of interconnected, larger scale infrastructure.

HVDC lines are also more sustainable and make the provision of renewable energy easier, which is a huge priority for modern data centers, as 87 percent of business leaders plan to invest more in sustainability in coming years.[7] In general, this type of transmission infrastructure would also add 8,760 hours per year of transmitted renewable energy and 4,380,000 tons per year of avoided carbon emissions, worth $219 million. The increased availability of renewable energy would encourage sustainability in data centers.[8]

Data Centers and Scenic Blight

The undergrounding of HVDC transmission as well as distribution lines would also preserve the scenic quality of our roads, green spaces, and communities surrounding data centers. Getting rid of overhead lines reduces visual blight along roadways and neighborhoods, and placing new transmission along existing ROW means that one less area of natural land needs to be cleared.

But the damage to natural scenery from the data centers themselves must also be considered. Although data centers are essential and their technology should be able to grow and develop, it must be done in a way that respects historic and environmental resources that are also essential to our country’s health. Virginia, for example, is the data center capital of the world, housing 35 percent of all hyperscale facilities. These facilities are huge, noisy structures that are usually windowless and ugly, an interruption of Virginia’s natural landscape and degradation to its scenic assets and viewsheds. Currently, data centers along with their substations and power corridors are seeking construction on some of the state’s significant historic battlefield sites.

Landowners have approached the Prince William County Board of Supervisors with a proposal to add their rural agricultural land, adjacent to battlefields and historic sites, to the data center district.[9] The proposal encompasses over 2,100 acres of land and would add 27 million square feet of data centers adjacent to Manassas National Battlefield Park. 107 of these acres are designated as “core battlefield areas” and one of the farms acquired is designated as a Nationally Registered Historic Site. The proposed construction of these data centers would permanently damage both the historical value and the scenic beauty of the land. The American Battlefield Trust is engaged in lawsuits to overturn the proposed rezonings and stop data center construction at battlefields such as Manassas and the Wilderness.

New data centers are also being proposed adjacent to National Parks in Virginia. Not only would this result in new, massive buildings, but would also require new roads, transmission lines, water and swear lines, and more critical infrastructure, creating an industrial intrusion on scenic and natural landscapes, and bringing increased noise, water, and air pollution to the Parks. The National Parks Conservation Association is urging local and state governments to site data centers in industrial areas alone and advocating for a ban of new data centers within one mile of National Park sites.[10]

The debate over data center placement is crossing the river into Maryland. The fate of Frederick County’s 20,000 acres of beautiful farmland, rolling hills, and the iconic Sugarloaf Mountain is a cause of debate amongst data center developers attempting to use the land for construction and community organizations seeking to protect it. The Frederick County Council failed to enact a land use proposal that would have prohibited large industrial and commercial developments, leaving the county’s fields and mountains at risk of serious scenic and environmental damage. Community organizations worry that the county will lose residents who don’t want to live among huge data center developments.[11]

In fact, towns all over the country are seeing citizen resistance to data center construction. Residents in towns like Chesterton, IN, and Peculiar, MO, who enjoy the quiet beauty of their neighborhoods, are organizing to petition the local governments to halt developers from infringing on those neighborhoods with imposing buildings and seemingly endless webs of overhead lines. Residents are using yard signs, fliers, Facebook groups, social media campaigns, and public demonstrations to protect their communities. The successful resistances are inspiring even more movements all around the US.[12]

Conclusion

Emerging technologies like AI and new priorities for efficient, renewable energy are increasing the load demand on America’s aging electric grid. Meanwhile, weather events from climate change are causing more and more cascading failures and power line damages which will slow the progress of data centers and prove to be detrimental to both reliability and resilience. Undergrounding distribution and transmission lines surrounding data centers will provide them with the amount of consistent energy they need to continue to develop and provide their ever-advancing infrastructure. Undergrounding will also allow data centers to achieve their renewable energy goals and reduce their scenic impacts. As data centers do develop and grow, they must continue to do so in the correct zoning, without impeding historically, culturally, scenically, or environmentally significant areas.

[1] Smalley, Ian and Susnjara, Stephanie. “What is a Data Center?” IBM. 4 September 2024.

[2] Liquid Web. “A Comprehensive Guide to Data Center Power and How it Works.” 28 October 2024.

[3] Liquid Web. “A Comprehensive Guide to Data Center Power and How it Works.” 28 October 2024.

[4] Smalley, Ian and Susnjara, Stephanie. “What is a Data Center?” IBM. 4 September 2024.

[5] McKinsey & Company. “How Data Centers and the Energy Sector Can Sate AI’s Hunger for Power.” 17 September 2024.

[6] CBRE. “Transmission Solutions Needed for Data Centers’ Renewable Energy Transition.”

[7] Smalley, Ian and Susnjara, Stephanie. “What is a Data Center?” IBM. 4 September 2024.

[8] Putnam, Morgan, and Rogers, Laura. “NextGen Highways Feasibility Study for the Minnesota Department of Transportation.” NGI Consulting and The Ray, 2022.

[9] American Battlefield Trust. “Data Center Development and Historic Battlefields.” 2024.

[10] National Parks Conservation Association. “Keep Massive Industrial Data Centers Away from our National Parks.” npca.org

[11] Cox, Jeremy. “Data Center Battle in Maryland Gets Early Preview in Rural County.” Bay Journal. 17 April 2024.

[12] O’Donovan, Caroline. “Fighting Back Against Data Centers, One Small Town at a Time.” The Washington Post. 5 October 2024.