CandleFocus

FERC blocks Amazon AI power deal, energy struggle with Bitcoin miners persists

Author: Content Editor
The Federal Energy Regulatory Commission (FERC) has denied a request from Talen Energy's Susquehanna nuclear plant in Pennsylvania to upgrade the power capacity for Amazon's AI data center located near the site. FERC claims that Amazon's power requirements would hinder the reliability of the grid and increase energy prices. The commission consulted with regional transmission organization Pennsylvania-New Jersey-Maryland Interconnection (PJM), who confirmed that up to 480MW could be supplied to the data center without negatively impacting the grid. However, FERC argues that any power requirement above 480MW could overwhelm the grid. Power generation companies AEP and Exelon had previously opposed the plan and argued that accommodating the data center would give it preferential treatment and reduce available energy for the grid. Bitcoin mining researcher Jaran Melleurd commented on the growing power demands of AI data centers and how they are outbidding Bitcoin miners for electricity. BPI researcher Margot Paez noted that many Bitcoin miners are switching to AI development as it generates higher revenues per megawatt-hour. The FERC Chairman stated that reliable electricity has become crucial for AI development, indicating potential future conflicts between Bitcoin miners and AI facilities.

Related News