Washington state, once abundant in clean and affordable power due to its hydroelectric dams, can no longer claim this advantage.
Energy demand is rising with increased power needs for tech giant “hyperscaler” data centers, industrial manufacturing, and electrification across the transportation and other sectors.
However, carbon-free solutions for continuous power are lagging behind.
Utilities are exploring clean alternatives like advanced nuclear power, green hydrogen, long-duration storage, and other technologies, according to Josh Jacobs, Puget Sound Energy’s vice president of clean energy strategy and planning. But these solutions are “five to 10 years down the road before we’ll see anything commercial at scale.”
“We are short today,” he noted. “The hyperscalers are expanding today. They’re consuming available hydro [power] and carbon-emitting resources that are currently available.”
Jacobs was part of an energy-focused panel at the Tech Alliance’s Policy Matters conference, addressing challenges posed by the AI revolution. The energy outlook was bleak.
“This is a very, very significant challenge, and we don’t yet have an answer, which is why we’re pursuing so many diverse technologies,” said Greg Cullen, vice president of energy services and development for Energy Northwest.
Cullen mentioned promising partnerships aimed at tackling the issue, such as a deal announced last month where Amazon is funding the feasibility phase for a proposed nuclear facility in central Washington, with rights to purchase electricity from the 320-megawatt plant.
Amazon, Microsoft, and Google are constructing power-intensive data centers worldwide to fulfill AI computing needs. This past year, they’ve signed agreements to acquire or develop nuclear power, which is appealing due to its lack of carbon emissions and ability to operate continuously, unlike the intermittent availability of wind and solar power.
The energy challenge is so vast that Microsoft has made a high-risk agreement to purchase power from Seattle-based fusion company Helion, contingent on the company overcoming technical barriers and providing power.
“We need a new power source on the grid to meet demands from AI and other infrastructure and energy needs,” stated Jessie Barton, Helion’s communications director and a panel participant.
Though no fusion company globally has yet generated power, Barton argued, “we are much closer than ever before to putting fusion on the grid. It’s crucial we’re having this conversation now.”
Chris Green, president of the Pacific Northwest Hydrogen Association, a government-supported hydrogen innovation hub, was the fourth panelist. Noel Schulz, director of the Washington State University Tri-Cities Institute for Northwest Energy Futures, moderated the discussion. The event took place at Seattle’s Bell Harbor Conference Center.
The panelists emphasized the importance of modernizing and improving grid operations to ensure efficient energy transfer from production sites to end-users. A crucial step in meeting demand is streamlining and expediting the permitting and siting process for both grid transmission lines and additional energy sources, according to the panelists.
Companies like tech behemoths have the capital to invest in clean energy initiatives, Green emphasized, but they need to act swiftly.
“We need to be more innovative in streamlining projects through the approval process,” he said. “How do we get these projects online?”
