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David Guenette's avatar

Jim, thanks for pointing out the destructive alliance between Big Oil and Big AI, where AI hyperscalers get the power they want and Big Oil gets many new gas generations plants—sometimes “behind the meter” that they can keep selling gas to for decades just as we’re running out of time to get GHG emissions down significantly.

The situation is something of a good news/bad news joke.

If there is any silver lining here, it is that all the proposed or wished-for gas generator plants are a practical fantasy. The supply chain for large gas turbines means wait times for new ones are numbered in years (3-6 years, depending on the analysis). I took a look at this issue again in January of this year, in a Substack post called “AI is Giving Me Gas: The Collision of Tech Hype and the Carbon Budget: We are scraping the bottom of the 1.5°C carbon budget. Big Oil’s response? Build 252 gigawatts of new gas power to feed the AI boom.” That post referenced a post from a while back, on my website: “New Gas Generator Plants and the Plan to Flood the (Electricity Demand Growth) Zone.” In this website post there’s a link to an AI analysis I did in a report called “The Future of U.S. Natural Gas Power Generation: Projections, Accuracy, and the Confluence of Limiting Factors to 2030. A lot of the proposed centers are just that, proposed, as hyperscalers scramble to find places and power sources, an effort akin to throwing spaghetti at the wall to see if any stick. Big Oil is the chief cheerleader for this, of course, because of the ensuing hysteria of the hyperscalers and the panicked sense that we’re short of electricity is good for business.

The bad news is that many hyperscalers are turning to even worse generation sources, including—as in the case of Musk’s big xAI facility in South Memphis—big diesel generators and inefficient older jet engines reconfigured as turbine generators.

A piece of good news is that many of these hyperscalers are morons when it comes to public relationships, as the public is pushing back against the data center concept within communities and sites. As for now, some breathing room (sorry) has been gained. Hopefully better sense will become the norm, not the exception, for would-be hyperscalers and their use of clean energy.

What should be another piece of good news is that solar/wind/batteries are cheaper and faster to build out than gas generators these days is, unfortunately, this fact is too often ignored, perhaps in part due to the anti-clean energy thinking of our current administration. Another potential piece of good news is that grid enhancing technologies exist and could be implemented by utilities to, among other benefits, make available more of the current capacity of the grid. Unfortunately, utilities, based on a notoriously conservative business model, have little legislative compulsion to serve the public by doing things differently.

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