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Silicon Valley vacation spot seeks new energy provider

Silicon Valley vacation spot seeks new energy provider

The growth of Artificial Intelligence (AI) technologies has sharply increased the demand for data centers. Although the Silicon Valley area has been partially shielded from these issues due to high costs, the situation is now changing. Lake Tahoe, a popular California vacation spot, must find a new energy supplier by May 2027. This is reported by Techcrunch.com reports .

The contract between Liberty Utilities and NV Energy is coming to an end. NV Energy plans to redirect its capacity to rapidly growing data centers in Nevada. Although the companies claim this process has been planned for a long time, the demand for electricity for AI projects exceeding 22 gigawatts is complicating the situation.

The shortage in the energy market and the global political situation are leading to rising electricity prices. Since the Lake Tahoe area depends on the Nevada power grid, local residents and second-home owners from Silicon Valley will have to pay significantly more for electricity next year.

A massive data center project planned in Utah is also expected to further exacerbate the energy shortage in the region. Requiring up to 9 gigawatts of power, this project is twice the consumption of the entire state. Such large projects will cause electricity prices in the region to rise even further.

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