The $100 billion Stargate project plans to source part of its power from solar energy and batteries. According to a report by Bloomberg, the renewable energy facilities for this project will be built by SB Energy, a subsidiary of SoftBank, but this will not be the only source of energy for the project.
Stargate is a collaboration between OpenAI, Oracle, and SoftBank Group, aimed at establishing a large number of new data centers to accelerate the rapid development of artificial intelligence applications.
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In recent years, the booming growth of cloud computing and artificial intelligence has led developers and tech companies to compete for power resources. The U.S. Department of Energy estimates that by 2028, electricity consumption by data centers could account for 12% of all electricity production in the United States, up from just 4.4% in 2023. In the face of an impending power shortage, it is expected that by 2027, 50% of new data centers will face power shortages.
Among data center developers and tech companies, nuclear energy has become a favored choice. Google has signed a 500-megawatt collaboration agreement with nuclear startup Kairos, while Microsoft plans to restart a decommissioned reactor at Three Mile Island. Additionally, data center operator Switch reached a 12-gigawatt collaboration agreement with small modular reactor company Oklo last year.
However, historical issues with nuclear energy projects have been numerous, facing cost overruns and project delays. Although emerging nuclear startups are striving to overcome these problems through modular production and streamlined approval processes, as of now, no company has completed reactor construction, and the first commercial reactors are not expected to be operational until 2030, which will provide little relief for the current energy shortages.
In contrast, the construction speed of solar and wind energy is significantly faster. Research shows that, compared to nuclear and natural gas plants, the construction time for solar projects is typically reduced to about 18 months. Due to the modular nature of solar projects, they can begin generating power even before the entire project is completed.
In solar projects, the most time-consuming stages are often the permitting and grid connection phases. For data centers, grid connection is sometimes not necessary, as many can directly source power from generation facilities. Given the urgency of the Stargate project, the relevant permitting processes may also be expedited, making solar energy the most likely power source for the first data centers.
Key Points:
🌞 The Stargate project will source part of its power from solar energy and batteries, aiming to build new data centers.
⚡️ The demand for electricity from data centers is surging, expected to account for 12% of total U.S. electricity by 2028.
🛠️ Compared to nuclear energy, solar energy construction is faster, likely to meet power demands sooner.
