Energy storage reshapes data center siting amid regulatory pressure

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From ESS News

In Texas, a new kind of reliability standard is reshaping where data centers choose to build and how they power their operations. Under a “kill switch” law that was adopted earlier this year, utilities can forcibly disconnect large, noncritical industrial users like hyperscale data centers during grid emergencies to keep electricity flowing to the largest number of people.

“Utilities across the country are warning operators to be ready for sudden power shutoffs,” explained James Roth, the head of global policy and government affairs at Bloom Energy. He told ESS News that, for operators with contractual uptime commitments, the risk of sudden shutoffs is “simply unsustainable.”

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