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PG&E Explores Gas Grid for Hyperscale Data Centers' Power

PG&E is looking to its gas grid to quickly power data centers. This move could help meet immediate demands, but raises questions about emissions and long-term plans.

In this image we can see a fire hydrant and yellow color pipe. Background of the image bus,...
In this image we can see a fire hydrant and yellow color pipe. Background of the image bus, electric wires, poles and trees are there.

PG&E Explores Gas Grid for Hyperscale Data Centers' Power

PG&E, a significant energy provider in Northern California, is exploring innovative ways to meet the growing power demands of hyperscale data centers. The company plans to upgrade its transmission system at a cost of $73 billion by 2030, largely driven by load growth from these data centers.

PG&E is considering leveraging the excess capacity on its fossil gas transmission grid to supply power to data centers. This move comes as hyperscalers, such as Amazon Web Services, Microsoft, and Google Meet, are seeking fast access to power, leading to a surge in gas-powered data center announcements. PG&E's gas transmission system, which accounts for less than 10% of the state's total fossil gas consumption, could provide this power in as little as 18 to 24 months.

PG&E's significant underground gas storage facilities allow it to withdraw gas during peak demand, ensuring a steady supply to these data centers. However, the company is not concerned about additional emissions from gas-powered data centers hindering its 2040 net-zero goals. Despite high costs and delays derailing some gas projects, PG&E is exploring this opportunity to meet the immediate needs of data center developers seeking speed to market.

PG&E's exploration of using its excess gas transmission capacity to power data centers is a strategic move to meet the immediate demands of hyperscale data centers. While the long-term plans of these data centers remain unclear, PG&E is prepared to provide a reliable power source within the next 18 to 24 months.

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