10 US Power Grids Best for the AI Data Center Boom

If the US needs one thing to lead the artificial intelligence revolution, it's electricity. An insane amount of that.

A 2024 report commissioned by the U.S. Department of Energy found that data centers (the backbone of artificial intelligence) already account for more than 4% of U.S. electricity usage, and the report said it could grow to 12% by 2028.

“The data center needs to run 24/7 and be able to support the needs of our users,” said Rachel Peterson, vice president of the data center. Meta. Parents of Facebook, Instagram and WhatsApp have announced a massive push to AI.

“We use a lot of power. We need to make sure we have a robust grid,” she said.

Meta is not alone, says economic development experts.

“The big issue right now is the delivery potential of the site,” said Tom Stringer, principal and leader of site selection and incentives at Grassi Advisors in New York. “And perhaps the biggest factor is proper power.”

The transaction continues. on tuesday, Google It announced that it would spend $25 billion on developing data centers along the nation's largest multi-state grid. meanwhile. coreweave Announced a $6 billion AI data center project in Pennsylvania.

CNBC is a business in America's top states, an annual competitiveness study, taking into account the electrical grids of each state. The methodology of this study uses US Department of Energy data on grid reliability (annual power outage period) and retail prices of electricity.

With its inexpensive and reliable power-rich power, these states are the perfect equipment to power the AI revolution and everything else.

There is no shortage of challenges across Washington's power grid, and across the Pacific Northwest. While demand is growing, climate change is intensifying the storms that hit the region each year, threatening the consistency of hydroelectric power, an important source of the region. But so far, the state has met demand at a reasonable price.

The largest power company: Puget Sound Energy

Statewide power outages: 2.53 hours/year (2023)

Average retail price of electricity (all sectors): $10.16/kWh (2024)

Power from renewable sources: 10.2%

According to the energy sector, New Mexico is the seventh largest generator for wind energy and aims to increase the use of other alternative sources, such as solar, to meet unrelenting demand. The state is also trying to modernize the grid with tools like smart meters that will help states better coordinate supply and demand.

The largest power company: New Mexico public service company

Statewide power outages: 2.82 hours/year

Average retail price of electricity (all sectors): $9.30/kwh

Power from renewable sources: 59.6%

Montana has the western end of the North Plains Connector, with a 420-mile, 525-kilovolt travel line that connects eastern and western electrical grids for the first time. The $3.2 billion project, partially funded by the Bipartisan Infrastructure Act of 2021, aims to make the grid more resilient and meet demand thanks to its ability to move electricity in both Montana and North Dakota directions. The project is in the permit phase, and construction is expected to begin in 2028, with electricity expected to flow in 2032.

The largest power company: Northwest Energy

Statewide power outages: 1.98 hours/year

Average retail price of electricity (all sectors): $10.84/kwh

Power from renewable sources: 25.1%

North Dakotan enjoys the cheapest electricity in any state. This is about 30% cheaper than nearby Minnesota. According to the U.S. Department of Energy, the state has a rich supply of coal and natural gas, and is one reason why it has a small population. This allows the nation to generate much more energy than it consumes. However, the state also boasts the country's most abundant wind energy resources, and is rich in other renewable sources, such as biomass. In all, North Dakota generates about a third of its electricity from renewable energy sources, and efforts are underway to increase it. North Dakota Empower, an agency created by the state legislature in 2007, aims to diversify the state's grid beyond fossil fuels.

The largest power company: Xcel Energy

Statewide power outages: 3.48 hours/year

Average retail price of electricity (all sectors): $8.00/kwh

Power from renewable sources: 34.7%

Idaho landed Meta's large Kuna data center in 2022 and was early in the data center sweepstakes. The approximately 1 million square feet of facility is scheduled to begin operation next year. To fulfill Meta's promise that the centre will operate 100% renewable energy, the company is helping to develop a nearby 200 megawatt solar facility. However, Idaho is also rich in other sources of renewable energy, especially hydroelectric power. Idaho is one of the only states that can generate substantial amounts of electricity through geothermal power.

The largest power company: Idacorp

Statewide power outages: 2.29 hours/year

Average retail price of electricity (all sectors): $9.52/kwh

Power from renewable sources: 29%

South Dakota, according to the energy sector, relies heavily on renewable energy, particularly wind power, which accounts for 55% of the state's power generation, to meet its greedy demand for energy. The only state that depends on the wind is Iowa. The energy sector notes that wind power was the first in South Dakota to surpass hydro in 2021. By 2023, wind energy had skyrocketed to three times as much as hydroelectric power generation. Meanwhile, South Dakota has maintained one of the most reliable grids in the country.

The largest power company: Xcel Energy

Statewide power outages: 1.28 hours/year

Average retail price of electricity (all sectors): $11/kwh

Power from renewable sources: 62.5%

Coal still accounts for almost half of Utah's generation, according to the energy sector, but it's falling sharply from 75% a decade ago. The Utah Department of Energy Development says its strategic energy plans are different from the energy policies of many other states.

“Although other states have enacted energy policies that focus on energy resources and emissions, Utah is focused on ensuring opportunities for citizens to maintain standard of living and thrive,” the office's website said.

The policy aims to double the state's power generation by 2025, while still keeping costs affordable, efficiencies and protecting the environment.

The largest power company: Rocky Mountain Power – Split Berkshire Hathaway'Pacificorp

Statewide power outages: 2.12 hours/year

Average retail price of electricity (all sectors): $9.03/kwh

Power from renewable sources: 32%

Wyoming is a coal country, according to the energy sector. So it's no surprise that coal-fired power plants produce about three-quarters of Wyoming's electricity than any other state except West Virginia. However, that is down from 97% in 2003. Since then, the decline in coal as a national priority source of energy has had a major impact on Wyoming's economy. Still, with the state's smallest population, and all of its coal, plus a wealth of wind, hydroelectric power, natural gas and solar power, Wyoming creates much more power than it consumes. This results in extremely low cost for a reliable grid.

The largest power company: Rocky Mountain Power – Pacicorp division of Berkshire Hathaway

Statewide power outages: 1.99 hours/year

Average retail price of electricity (all sectors): $9.15/kwh

Power from renewable sources: 24.8%

Iowa's power mix has changed rapidly over the past decade or so. Coal, which was dominated until around 2019, now accounts for less than a quarter of the state's electricity production. The Duane Arnold Energy Center near Cedar Rapids, the state's only nuclear power plant, has halted its operation after suffering damage at the infamous Direco in 2020. Now the owner of the factory, nextera Energy Resourcesis considering the possibility of restarting plants to meet demand from projects such as data centers. However, the company is developing two new solar farms on its site.

The largest power company: Central American Energy (Berkshire Hathaway)

Statewide power outages: 1.75 hours/year

Average retail price of electricity (all sectors): $9.43/kwh

Power from renewable sources: 65.6%

Nebraska offers the most reliable power grid in America, among the lowest costs. The Energy Agency says Nebraska is the only state owned by the public, where all electricity providers are publicly owned through public power districts, local government power systems, or rural electrical cooperatives. Most of the state's electricity comes from coal-fired power plants, but the amount of electricity produced by coal is the lowest in generation.

In May, Gov. Jim Pillen signed a law that puts new restrictions on cryptocurrency mining. The law requires miners to contribute to improving the grid, allowing utilities to be required to shut down during peak demand.

The largest power company: Nebraska Public Power District

Statewide power outages: 1.21 hours/year

Average retail price of electricity (all sectors): $9.19/kwh

Power from renewable sources: 33.6%