Data center electricity consumption has risen dramatically – and could represent up to 12% of total U.S. electricity demand in just two years, according to Lawrence Berkeley National Laboratory. For renewable energy developers, EPCs, technology providers, and financiers, data centers represent an extraordinary opportunity.
Tech giants, with both significant AI expansion plans and sustainability mandates, now make up seven of the top ten U.S. corporate renewable energy buyers. That trend illustrates the vast potential of the data center boom not only in terms of investment, but also deployment scale. Meta, for instance, partnered with Ørsted and the Salt River Project to sidestep traditional bottlenecks and enable interconnection in less than a year, cutting the typical timeline in half.
Because it differs sharply from traditional utility-scale contracting, data center procurement has created a new competitive landscape. Speed is the new currency in this market. Hyperscalers prioritize uptime guarantees and hourly carbon-free verification over lowest cost per megawatt-hour. This new framework rewards developers who demonstrate operational credibility and technical sophistication over those competing solely on pricing.
Positioning for competitive advantage
In addition to speed-to-energization and uptime certainty, data center operators have other requirements when looking to sign power purchase agreements. Their primary considerations include:
- Price Predictability: Hyperscalers often prefer fixed-price contracts to eliminate exposure to fuel and wholesale market volatility.
- 24/7 Carbon-Free Energy: Winning projects must demonstrate and verify hourly carbon-free energy delivery. That means providing carbon-free power in the same hour it is consumed – not averaged annually.
- Transparency and Verification: Operators need auditable data that shows delivered electricity is not only carbon-free but also matched to the load for ESG reporting and contractual compliance.
- Site Selection and Land Requirements: Sites should ideally balance grid access, permitting speed, and operational suitability (such as adequate land and minimal environmental risk).
The decisive moment
Today, solar + storage is scaling rapidly while competing technologies face multi-year delivery timelines. Hyperscalers are signing long-term contracts now, locking in capacity years before operations begin. Projects delivering before interconnection backlogs extend beyond 2028 will capture premium pricing and investment-grade offtakers.
The e-book Power Under Pressure: Capturing the Data Center Boom provides deeper insight into regional hotspots and market dynamics, system design implications, and real-world case studies. For clean energy teams attempting to ride this next wave of demand, the e-book offers technical strategies and practical guidance on what it takes to win. Download a free copy of the e-book here.
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