House and Senate energy committee members met in a joint session on Friday (2/27) afternoon to explore the effects of data center construction on jobs, the stability of the regional power grid, economic development, and the price of electricity for ratepayers in the First State.
The construction of data centers — structures that house large networks of servers, storage systems, and computing infrastructure — has risen dramatically in recent years with the rapid adoption of artificial intelligence (AI) technology. Such facilities are energy-intensive. There are at least five data centers that are under consideration in Delaware jurisdictions, the largest of which would consume 1.2 gigawatts of electricity, roughly about 25% more electricity than is used by all the homes in the state.
Dozens of additional data centers have been proposed in neighboring states.
The issue is not confined to Delaware or our region but is part of larger national and international trends. According to a 2024 U.S. Department of Energy report, the electricity consumption of U.S. data centers is currently growing…[at a] compound annual growth rate of approximately 7% from 2014 to 2018, increasing to 18% between 2018 and 2023, and then ranging from 13% to 27% between 2023 and 2028.”
The report also cites other factors driving rising electricity demand, including the adoption of electric vehicles, increased domestic manufacturing, the move toward hydrogen production and utilization, and the electrification of industry and buildings.
Friday’s joint hearing featured presentations by Reliability First, PJM Interconnection (the managers of the regional power grid), the General Assembly’s Division of Legislative Services, the Delaware Division of the Public Advocate, and Glenn Davis (former director of the Virginia Department of Energy).
To access all of the material presented at the hearing, click here.
IN PHOTO, FROM LEFT: State Rep. Jeff Hilovsky and State Sen. Eric Buckson, both members of their chambers’ energy committees, were active participants in Friday’s hearing.
