The data center boom: ‘All the cheap power is gone’

Open Circuit

The tech industry is pouring $1.3 trillion into data centers globally over the next five years. While efficiency breakthroughs like the launch of DeepSeek's R1 reasoning model might reduce computing needs, the sheer scale of AI deployment means we're still facing historic demand growth. Data center electricity consumption doubled under Biden — and it's projected to triple by 2030.

In this episode, we examine how utilities, tech companies, and policymakers are grappling with the wave of data center development. We explore why the "mega-campus" model is giving way to smaller building blocks, how grid constraints are reshaping data center deployment, and why all new generation — whether it's solar, nuclear, gas, or geothermal — converges at $100 per megawatt-hour.

Then, we sit down with Peter Freed, Meta's former director of energy strategy, who explains how tech companies evolved from building single data centers to managing massive power portfolios. He shares insights about the critical window between 2027-2032 when data center load will hit the grid alongside broader electrification, and why that's driving new interest in nuclear, geothermal, and grid-enhancing technologies.

Along the way, we tackle some big questions: How are utilities handling the flood of speculative interconnection requests? What does Trump's $500 billion Stargate project mean for grid infrastructure? And most importantly: who's going to pay for all of this?

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Credits: Co-hosted by Stephen Lacey, Jigar Shah, and Katherine Hamilton. Produced and edited by Stephen Lacey. Original music and engineering by Sean Marquand.