cryptopolitan.com
The Federal Energy Regulatory Commission (FERC) stopped an Amazon AI data center from drawing more power from Talen Energy’s Susquehanna plant in Pennsylvania.
The commission disapproved the proposed energy deal changes on claims that Amazon’s power requirements would interfere with the grid’s reliability and raise energy prices.
FERC raises concerns about Amazon’s data center
The FERC declined Talen Energy’s request for a power capacity upgrade to Amazon’s data center. The declined proposal meant to alter the agreement between Talen’s Susquehanna nuclear plant in Pennsylvania and the 650 million Amazon data center near the site. If the request had been approved, the nuclear-powered AI facility would have been in for 480MW, up from 300MW.
In its ruling, the commission noted that it had consulted with Pennsylvania-New Jersey-Maryland Interconnection (PJM), the regional transmission organization, about the proposed power increase. PJM confirmed it could supply up to 480MW to the co-located data center without negatively affecting the grid. However, it did state that any power requirement above 480MW to the facility may overwhelm the grid.
The commission maintained that the proposed changes could heavily impact the grid’s reliability and increase the cost burden on other consumers. FERC Commissioner Mark C. Christie even added that the PJM failed to meet its burden of proof, giving it more reasons to deny the request.
In July, power generation companies American Electric Power (AEP) and Exelon argued against Talen’s plan to accommodate Amazon’s AI data center, especially after its signed ISA agreement with PJM. These two companies believed that the interconnection between Talen and PJM would give Amazon’s center preferential treatment, reducing the energy available to the grid.
At the time, they even pushed for the amended ISA to go through the court and urged the FERC to reject it.
Bitcoin miners’ concerned about rising energy demands in AI data centers
Bitcoin mining researcher Jaran Melleurd pointed out how power demands for AI data centers are growing and unfortunately, Bitcoin mining facilities have to compete with them for energy supply.
He said:
With the ability to generate much higher revenues per kilowatt-hour, these AI operations can easily outbid Bitcoin miners for electricity — and they are doing exactly that. [..]Bitcoin miners will be pushed to the fringes, forced to chase down power in areas lacking the infrastructure AI demands.
~Jaran Melleurd
BPI researcher Margot Paez even highlighted that many Bitcoin miners are already switching to AI development, noting that this behavior will likely persist since AI generates more revenue per megawatt-hour than Bitcoin.
The FERC Chairman, Willie L. Phillips, even agreed that reliable electricity has become the “lifeblood” of AI development, hinting at more power brawls between Bitcoin miners and AI facilities.