The inaugural Data Center POWER eXchange (DPX) in Denver on October 28 brought together utilities, hyperscalers, grid operators, regulators, financiers, and project developers to confront the accelerating collision between data center load and grid constraints. The summit, curated by POWER’s editorial team, aimed to spark a project-level discussion about delivering power at the scale artificial intelligence demands.
Mark Christie, former chair of the Federal Energy Regulatory Commission (FERC), opened the day by framing the sector’s dual crisis: reliability strain and rising customer costs. “When Americans talk about reliability, what they mean is, I want power 24/7 365,” he said. “That’s what Americans expect.” He pointed to a 6% year-over-year increase in power bills, noting that the last five years have seen more increases than the previous 25. This, he warned, creates political tension, likening the situation to a “volcano on the verge of exploding.”
Christie attributed the supply-side crisis to the premature retirement of dispatchable generating units, particularly coal, without equivalent replacement. On the demand side, he highlighted the reshaping of the curve by large customers, particularly data centers. “Load increases without generation. Something’s got to give,” he concluded. He posed three regulatory questions: How will new generation be financed? What is the best state-level regulatory framework? And how will costs be allocated?
Robert Blue, chairman and CEO of Dominion Energy, provided a utility perspective, revealing the AI-era load growth within his vertically integrated company. A decade ago, Dominion Energy Virginia was connecting 100 to 200 MW of data center capacity annually. Half a decade ago, it was 600 MW per year. For the last three years, it has been about 1 GW per year. “It’s not just that data center load is growing. The rate of overall growth is increasing as well,” Blue said.
He emphasized Dominion’s commitment to reliability and affordability, noting that residential rates have long been below the national average and comparable to or below relevant regional averages. He revealed that data centers now account for 27% of Dominion Energy Virginia’s sales, with most of that load concentrated in Northern Virginia’s Data Center Alley. PJM is projecting 6.3% annual growth, with demand expected to double by 2039.
The DPX summit highlighted the urgent need for collaboration and innovation in the face of these challenges. The sector must grapple with long-lead equipment shortages, transmission limits, unstable timelines, cost-allocation disputes, and the widening gap between hyperscaler speed and utility planning cycles. The insights shared at DPX will likely shape the sector’s approach to these issues, fostering a more resilient and adaptable energy landscape.