What happened
Data centre developers in the US are overstating energy requirements, rendering power demand forecasts unreliable. This practice generates 'phantom' data centres, which are projects maintained on paper despite lacking viability. Consequently, grid operators and policymakers face a significant discrepancy between projected and actual energy consumption, leading to potential misallocation of resources and unnecessary infrastructure investments for future energy demands.
Why it matters
The overstatement of energy requirements by data centre developers introduces a significant visibility gap for grid operators and policymakers. This practice weakens the control over accurate energy demand forecasting, increasing exposure to misallocated resources and unnecessary infrastructure investments. Consequently, procurement and planning teams within utility companies and government bodies face higher due diligence requirements for validating project viability and assessing future energy needs.
