N.B. Power Seeks Flexible Solutions from Energy-Intensive Data Centers
N.B. Power is currently assessing the electricity demands of a proposed data center in Lorneville, Saint John. The utility expresses no immediate concern but seeks flexibility from such facilities regarding their energy consumption. This assessment comes alongside plans for a 400-megawatt natural gas plant in Tantramar, which N.B. Power argues is unrelated to the data center’s requirement for 190 megawatts.
N.B. Power and Data Centers: Seeking Flexible Solutions
Brad Coady, N.B. Power’s chief commercial officer, emphasized that the gas plant initiative and the data center project are independent. He clarified that discussions about the gas plant predate any awareness of the data centers in media.
Controversial Connections and Political Concerns
- Megan Mitton, Green Party MLA from Tantramar, has suggested a potential link between the gas plant proposal and the data center.
- The data center will support artificial intelligence services and requires approximately 190 megawatts from N.B. Power and another 190 megawatts from its own natural gas generation.
- Mitton expressed concerns about the implications of increased electricity demand influencing governmental decisions regarding energy production.
N.B. Power previously indicated that the gas plant is essential to prevent a future electricity shortfall attributed to growth in population and the economy. In 2023, the utility faced peak demand levels that risked exceeding its available electricity supply.
Conditions for Data Centers
- N.B. Power aims to establish agreements with data centers to minimize demand during peak periods.
- Flexibility could involve shutting down operations or relying on self-generated power.
Coady reiterated that finding adaptable solutions with data centers can pave the way for future energy stability in New Brunswick. Meanwhile, Nathan Ough, CEO of VoltaGrid, highlighted the potential for data centers to contribute electricity back to the grid during peak demand situations, easing overall demand.
Growing Demand and Regulatory Landscape
The North American Electrical Reliability Corporation recently reported increasing electricity demands driven by data centers across North America, placing particular stress on the Maritimes. N.B. Power is legally required to provide electricity to new industrial facilities under provincial law. However, there are currently no plans to exempt data centers from these requirements, even as measures have been taken for crypto mines due to their intense electricity consumption.
As rates are expected to rise due to N.B. Power’s existing debt, Coady argued that data centers could help mitigate costs by distributing expenses over broader kilowatt hours, ultimately benefiting the overall rate structure.
Future Outlook
Ough affirmed that N.B. Power will not support the data center if it disrupts the overall energy supply. This perspective highlights the ongoing negotiations surrounding energy consumption requirements and the potential implications of new technologies on power demands in New Brunswick.
