Axios Live: Data centers are reshaping state energy industries

LAS VEGAS — The nation is seeing massive data center growth, creating a new normal for the energy industry facing unprecedented demand, speakers said at an Axios Live event last week.

Why it matters: Data centers powering the AI boom require that much more power capacity to be added to the grid.

• Axios' Ben Geman spoke with Switch founder and CEO Rob Roy and Electric Reliability Council of Texas Board of Directors chair Bill Flores at the event, sponsored by Schneider Electric at its Innovation Summit North America.

What they're saying: "We're currently on a path to consume a third of the power in Nevada – just Switch," said Rob Roy, founder and CEO of the data center developer Switch.

• "We're the largest client for NV Energy, and power rates for Nevada residents went down last year, and so this can be done really well," Roy said, referring to the relationship between data centers and the grid.

What we're watching: "Between now and 2030, Texas expects to add 62% to its grid, that's like adding California to Texas," Flores said.

The bottom line: "AI is a race that we have to win. This needs to be our moonshot for this generation," Flores said.

Content from the sponsored segment:

In a View From the Top conversation, Schneider Electric CEO and energy industry veteran Olivier Blum said that "the speed at which we see technology changing has nothing to do with … what we have known in the past," propelling the company to strive to be more tech-focused.

• "When you look at what it means for our industry, what are the types of products we need to develop, every single product that we develop has to be software-first, has to be connectable," he said.