David Penna discusses the power demand of data centers with IJGlobal
Davis Polk partner and Infrastructure Finance practice co-head David Penna was quoted in IJGlobal discussing the demand for power as data centers are built and maintained.
“By far the hardest part of data center development and construction is the power picture,” said David. “Most of the data center developers have a strong preference for green power, so they’re all out looking for that. But the interconnection queues are massively backed up, and the transmission grid is just so grossly outdated that the time and potentially the cost of getting that power to the data centers can be a challenge.”
The article noted that the advancement of small modular reactors (SMRs) is attracting the attention of data center companies, but that they might not be readily available until 2029 or 2030. David said, “Data center consumers are still willing to buy them just because they kind of want that certainty of supply even if it’s multiple years out.”
“Data centres and AI: Solving the power puzzle,” IJGlobal (January 7, 2025) (subscription required)