Hyperscale Data Centers, Regulatory Institutions, and US Economic Growth

Abstract

This is our second in a series of columns on data center problems. Our first column appeared in the November edition of this journal¹ — just before the Federal Energy Regulatory Commission (FERC) held its Technical Conference on “Co-Located Load” on November 1, 2024.² In this column, we report on the outcomes of that Technical Conference. We also draw attention to how a split-decision FERC Order that same day had the effect of erasing $12 Billion in common equity value for nuclear plant owners, both active and shuttered, who hopefully anticipate the co-location of hyperscale data centers at their sites. These events reinforce the perspective our column brought to bear in November — and which we expand upon here.