Massive Power Demand Boosting Solar in US, Nextracker CEO Says
Utilities need solar power to help keep the lights on with surging demand from data centers.
Dan Shugar
Source: Nextracker/BusinesswireInsatiable demand for electricity in the US will overpower headwinds facing the solar industry, leading to an unprecedented buildout of panels, according to Nextracker Inc. Chief Executive Officer Dan Shugar.
Utilities are desperate to line up new supplies to meet the needs of power-hungry data centers, plug-in cars and electric heating and cooling systems, said Shugar in an interview at Bloomberg's bureau in San Francisco. At the same time, legacy fossil fuel and nuclear power plants are retiring and solar is one of the cheapest and fastest options available -- so there will be a lot more built, he said.
After more than a decade of relatively unchanged annual electricity demand, utilities now are expecting the biggest rise in electricity use in a generation. Consumption at US data centers alone is poised to triple from 2022 levels to as much as 390 terawatt hours by the end of the decade, according to Boston Consulting Group. That’s equal to about 7.5% of the nation’s projected electricity demand.