Moody’s Ratings has warned that Vertically-integrated electric utilities may benefit from data center demand growth but risk credit risks if they do not adequately address contractual safeguards and other cost recovery mechanisms. The report names Dominion Energy subsidiary Virginia Electric and Power Co., Pinnacle West Capital subsidiary Arizona Public Service, and Southern Co.’s Georgia Power as utilities well positioned to benefit from higher revenues from serving cloud computing, artificial intelligence, and other digital services. However, Moody’s warns that without proper safeguards, utilities could face credit risks in the event new demand does not materialize. Data center electricity demand could double by 2030 to consume 9% of U.S. electricity generation, according to analysis by the Electric Power Research Institute. Some experts doubt that all anticipated load growth will materialize as AI-enabling chips and algorithms become more efficient.
Solar Dominates US Energy Capacity Growth
The Federal Energy Regulatory Commission (FERC) has published data showing that solar accounted for over 75% of US electrical generating
