Power Struggles Emerge as Data Centers Expand in Denver

During a recent government meeting, discussions centered on the significant power consumption of data centers in Denver, highlighting concerns about the local energy grid's capacity. A city official noted that data centers are the highest power users in Denver, consuming five times more energy per square foot than other facilities. This has raised alarms, particularly in the Globeville, Elyria, and Swansea (GES) neighborhoods, where the grid is nearing its limits, hindering potential housing developments.

The conversation shifted to the specifics of a new data center project, with representatives clarifying that their facility would initially require 18 megawatts of power, with plans to expand to 60 megawatts over time. They emphasized that this demand would be managed through a long-term agreement with Xcel Energy, allowing for a gradual increase in power usage without overwhelming the local grid. Additionally, the company plans to invest tens of millions of dollars in building a substation on-site to draw power directly from the transmission network, further mitigating impacts on the surrounding community.

Despite these measures, concerns were raised about the environmental implications of increased power generation, as much of the energy supplied by Xcel still comes from non-renewable sources. Officials acknowledged that while their facility may be more efficient than older data centers, the overall demand for energy would still rise due to the nature of data generation.

In terms of scale, the representatives compared their facility's power needs to that of a small town, clarifying that while their operations are smaller than the massive, hyperscale data centers often reported in the media, the cumulative effect of multiple data centers could still pose challenges for the local energy infrastructure. The meeting underscored the need for careful planning and consideration of energy sources as the city navigates the growing demand for data services.