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In response to the growing energy demands of AI, major tech companies are turning to old power stations and industrial sites to build more data centers.
As reported in the Financial Times (FT), Microsoft is leading this initiative with plans to develop data centers on the sites of the former Eggborough and Skelton Grange power stations near Leeds, England. Construction at the site is slated to begin in 2027. Amazon is not sleeping on this trend as it’s preparing to establish a campus at the site of the former Birchwood power station in Virginia.
While nuclear and solar energy sources are being explored to boost the energy supply for existing data centers, hyperscalers seem to prefer repurposing old power stations and industrial sites. These locations are particularly appealing due to their existing infrastructure, which is built for high energy consumption. Many of these sites already have power transmission capabilities and are located near water sources, making them ideal candidates for conversion into data centers.
Repurposing Power Stations: A Strategic Move to Sustain AI Growth
The decision to convert decommissioned power stations into data centers comes as the tech sector grapples with energy availability constraints in current data centers, which is feared could hinder AI growth if an expansion is not rolled out soon.
In the past few years, there has been an explosive growth of data centers globally. In 2023, there were about 8,000 data centers in the United States and by 2030, McKinsey predicts a 10% rise, as demand for AI is bound to skyrocket.
Meanwhile, the search for data center expansion is not limited to repurposing of old power stations. Microsoft is also considering atomic fusion as a new energy source to power its growing AI operations by 2028. This ambitious plan, according to the Washington Post, is centered near the Columbia River in central Washington, a region historically known for its hydroelectric power. However, scientists remain skeptical, noting that atomic fusion has evaded successful implementation for over a century.
