10 U.S. state energy grids finest positioned for AI information heart growth

If there may be one factor the U.S. wants to guide the unreal intelligence revolution, it is electrical energy. Insane quantities of it.

A 2024 report commissioned by the U.S. Division of Power discovered that information facilities — the spine of synthetic intelligence — already accounted for greater than 4% of U.S. electrical energy use, and the report mentioned that might develop to 12% by 2028. That will be 580 billion kilowatt hours, or practically 20 instances the annual energy consumption of town of Chicago.

“Information facilities run 24/7, and wish to have the ability to help the wants of our customers,” mentioned Rachel Peterson, vp of information facilities for Meta. The mum or dad of Fb, Instagram and WhatsApp has introduced a massive push into AI.

“We use numerous energy. We want to ensure we have now a strong grid,” she mentioned.

Meta just isn’t alone, say financial improvement consultants.

“The massive points proper now are deliverability of web sites,” mentioned Tom Stringer, a principal and chief of the location choice and incentives apply at Grassi Advisors in New York. “And perhaps the largest part of that’s sufficient energy.”

The offers hold coming. On Tuesday, Google introduced it could spend $25 billion to develop data centers alongside the nation’s largest multi-state grid, an electrical energy area protecting 13 states in all. In the meantime. CoreWeave introduced a $6 billion AI data center project in Pennsylvania.

CNBC considers every state’s electrical grid in our annual competitiveness research, America’s Top States for Business. Beneath the research’s methodology, we use U.S. Division of Power information on grid reliability — the length of energy outages per yr — in addition to the retail value of electrical energy.

With a wealth of cheap, dependable electrical energy, these states are the most effective outfitted to energy the AI revolution, and all the things else.

The facility grid in Washington — and throughout the Pacific Northwest — faces no scarcity of challenges. Whereas demand grows, local weather change is intensifying the storms that batter the world yearly and threatening the consistency of hydroelectric energy, an necessary supply for the area. However to this point, the state is assembly the demand at an affordable value.

Largest electrical utility: Puget Sound Power

Energy outages statewide: 2.53 hours/yr (2023)

Common retail value of electrical energy (all sectors): $10.16/kWh (2024)

Energy from renewable sources: 10.2%

New Mexico is the seventh largest generator of wind vitality, in response to the Power Division, and it’s searching for to extend using different various sources like solar energy to satisfy relentless demand. The state can be searching for to modernize its grid with instruments like sensible meters that may assist the state higher coordinate provide and demand.

Largest electrical utility: Public Service Company of New Mexico

Energy outages statewide: 2.82 hours/yr

Common retail value of electrical energy (all sectors): $9.30/kWh

Energy from renewable sources: 59.6%

Montana is residence to the Western finish of the North Plains Connector, a 420-mile, 525-kilovolt-transmission line that may join the Jap and Western U.S. electrical grids for the primary time. The $3.2 billion undertaking, funded partly by the Bipartisan Infrastructure Regulation of 2021, goals to make the grid extra resilient and aware of demand, with the flexibility to maneuver electrical energy in both course between Montana and North Dakota. The undertaking is within the allowing part, with building anticipated to start in 2028, and electrical energy anticipated to start flowing in 2032.

Largest electrical utility: NorthWestern Energy

Energy outages statewide: 1.98 hours/yr

Common retail value of electrical energy (all sectors): $10.84/kWh

Energy from renewable sources: 25.1%

North Dakotans benefit from the least expensive electrical energy of any state — roughly 30% cheaper than in neighboring Minnesota. One motive, the U.S. Division of Power says, is that the state has plentiful provides of coal and pure gasoline, and a small inhabitants. That permits the state to supply way more vitality than it consumes. However the state additionally boasts essentially the most plentiful wind vitality assets within the nation, and it’s wealthy in different renewable sources like biomass. In all, North Dakota generates about one-third of its energy from renewable sources, and efforts are underway to extend that. EmPower North Dakota, an company created by the state legislature in 2007, goals to diversify the state’s grid past fossil fuels.

Largest electrical utility: Xcel Energy

Energy outages statewide: 3.48 hours/yr

Common retail value of electrical energy (all sectors): $8.00/kWh

Energy from renewable sources: 34.7%

Idaho was early to the information heart sweepstakes, touchdown Meta’s large Kuna data center again in 2022. The roughly 1-million-square-foot facility is anticipated to start operations subsequent yr. To satisfy Meta’s promise that the middle will run on 100% renewable vitality, the corporate helps to develop a 200-megawatt photo voltaic facility close by. However Idaho can be wealthy in different renewable sources, most notably hydroelectric energy. Idaho can be one of many solely states able to producing vital quantities of electrical energy by way of geothermal energy.

Largest electrical utility: Idaho Power (IDACORP)

Energy outages statewide: 2.29 hours/yr

Common retail value of electrical energy (all sectors): $9.52/kWh

Energy from renewable sources: 29%

South Dakota is assembly the voracious demand for vitality with a heavy reliance on renewables — particularly wind, which accounts for 55% of the state’s electrical energy era, in response to the Power Division. The one state extra reliant on wind is Iowa. The Power Division notes that wind energy surpassed hydropower in South Dakota for the primary time in 2021. By 2023, wind vitality had surged to a few instances as a lot electrical energy era as hydropower. All of the whereas, South Dakota has maintained one of the vital dependable grids within the nation.

Largest electrical utility: Xcel Energy

Energy outages statewide: 1.28 hours/yr

Common retail value of electrical energy (all sectors): $11/kWh

Energy from renewable sources: 62.5%

Whereas coal nonetheless accounts for practically half of Utah‘s electrical energy era, that’s down sharply from 75% a decade in the past, in response to the Power Division. The Utah Workplace of Power Improvement says its Strategic Energy Plan differs from vitality insurance policies in lots of different states as a result of it prioritizes the human penalties of its actions.

“Whereas different states enact vitality insurance policies centered on vitality assets and emissions, Utah is targeted on guaranteeing our residents keep their lifestyle and have the prospect to thrive,” the workplace’s web site says.

The coverage goals to double the state’s energy manufacturing by 2025, whereas conserving prices reasonably priced, rising effectivity, and defending the surroundings.

Largest electrical utility: Rocky Mountain Energy – a division of Berkshire Hathaway‘s PacifiCorp

Energy outages statewide: 2.12 hours/yr

Common retail value of electrical energy (all sectors): $9.03/kWh

Energy from renewable sources: 32%

Wyoming is coal nation — residence to about one-third of the nation’s recoverable coal reserves, in response to the Power Division. So, it ought to come as no shock that coal-fired energy crops produce round three-quarters of Wyoming’s electrical energy, greater than any state besides West Virginia. However that’s down from 97% in 2003. Since then, coal’s decline as a most popular vitality supply nationwide has profoundly affected Wyoming’s financial system. Nonetheless, with the smallest inhabitants of any state, and all that coal — plus plentiful wind, hydroelectric, pure gasoline and solar energy — Wyoming produces way more energy than it consumes. That makes for very low prices on a dependable grid.

Largest electrical utility: Rocky Mountain Energy – a division of Berkshire Hathaway’s PacifiCorp

Energy outages statewide: 1.99 hours/yr

Common retail value of electrical energy (all sectors): $9.15/kWh

Energy from renewable sources: 24.8%

No state will get extra of its electrical energy from wind than Iowa, in response to the Power Division, which says Iowa’s energy combine has modified quickly over the previous decade or so. Coal, which was dominant till round 2019, now accounts for lower than 1 / 4 of the state’s electrical energy manufacturing. The state’s solely nuclear plant, the Duane Arnold Power Middle close to Cedar Rapids, ceased operations after sustaining injury within the notorious 2020 derecho. Now, the plant’s proprietor, NextEra Energy Resources, is wanting into the potential of restarting the plant to assist meet demand from tasks like information facilities. However the firm can be growing two new photo voltaic farms on the location.

Largest electrical utility: MidAmerican Power (Berkshire Hathaway)

Energy outages statewide: 1.75 hours/yr

Common retail value of electrical energy (all sectors): $9.43/kWh

Energy from renewable sources: 65.6%

Nebraska gives America’s most dependable energy grid, at among the many lowest value. The Power Division says Nebraska is the one state during which all electrical energy suppliers are owned by the general public — both by way of public energy districts, municipal energy methods, or rural electrical cooperatives. Many of the state’s electrical energy nonetheless comes from coal-fired energy crops, however the quantity of electrical energy generated by coal is the bottom in a era.

In Could, Gov. Jim Pillen signed legislation inserting new restrictions on cryptocurrency mining — one other main person of electrical energy. The regulation requires miners to contribute to grid enhancements, and it permits utilities to require them to close down throughout instances of peak demand.

Largest electrical utility: Nebraska Public Energy District

Energy outages statewide: 1.21 hours/yr

Common retail value of electrical energy (all sectors): $9.19/kWh

Energy from renewable sources: 33.6%