Demand for Sites with Significant Electrical Infrastructure Increases with AI and Data Centers

Developers of Data Centers are Rushing to Purchase Land Suitable for Large Scale Projects

CANTON, OHIO, USA, July 19, 2024 /EINPresswire.com/ -- Getting new electric transmission lines built in the US has been described as akin to “herding cats,” with numerous stakeholders having to come together and negotiate a compromise about where a line runs and who pays for it.

Regulatory approval measured most often in years, “NIMBY” coming into play almost immediately and every addition basically serving as a band aid on a power grid never designed to do what it does today, and you have the makings of a catastrophic system failure.

While this is occurring, America’s need for power supply increases continues growing for the foreseeable future.

But even with new supplies in place, if new/expanded transmission lines and distribution lines are stalled, that new windmill, solar farm, or natural gas well might as well be a plant stand.

Forward-thinking companies, be they utilities, transmission line developers, independent power producers or end users demanding power, often require assistance in project development, specifically site selection.

Bryce Custer, Site Selector and Consultant, has spent decades helping front- and back-end commercial entities find sites needed in Pennsylvania, Ohio and West Virginia.

When the Marcellus Shale natural gas “wave” hit the above-named trio of states two decades ago, Custer pivoted and began spending much of his time helping ancillary businesses find the right place to settle to serve the gas industry.

Custer has again pivoted and is spending much of his time assisting clients involved in providing power or having huge power needed to make their plans a reality.

“Electrical infrastructure for projects that demand from 3-300MW, from basic manufacturing to Hyperscaler Data Centers, are in short supply and the inventory is shrinking daily.” according to Custer.

Roughly 70% of the nation’s transmission lines are over 25 years old, and an aging infrastructure makes communities, infrastructure, and economic interests vulnerable.

New and upgraded transmission lines deliver power to where it’s needed, whether to towns and cities nationwide, or moving power from one region to another to overcome the potential destructiveness of storms, heat waves, and other extreme weather.

“We take electrical power for granted. Whether we are charging our cell phone, leaf blower or electric vehicle, electricity must be generated and distributed. As our electrical needs increase, the infrastructure to deliver will need to increase,” said Custer.

A January 2024 analysis by the International Energy Agency projects electricity consumption from data centers, cryptocurrencies and AI (artificial intelligence) could double over the next two years. The sector was responsible for around 2% of global electricity demand in 2022, according to the IEA. The analysis predicted demand from AI will grow at least 10 times between 2023 and 2026.

As well as the energy required to make chips and other hardware, AI requires substantial amounts of computing power to “train” models, feeding them enormous amounts of data.

Training an AI model involves teaching it to recognize patterns in data for decision-making. Fine-tuning is a strategy that adapts models trained on large datasets to smaller, task-specific datasets by continuing the training process.

“We are currently working with developers of various types and sizes on locations ranging from 2-2,000 acres and 1-1,000MW of power. We are actively seeking locations for Managed, Enterprise, and Colocation Data Centers.” said Custer

To help modernize the aging infrastructure, the government is pouring billions of dollars via grants, loans and other financing vehicles into expanding/modernizing the nation’s electricity transmission system and power grid.

“Now is the time to identify and lock down your site for the present and future. The locations with unique characteristics for data center sites are in short supply and shrinking daily.” according to Custer.

Bryce Custer, CCIM, SIOR is the founder of Ohio River Corridor, LLC., a commercial real estate service company specializing in site selection, consultation and development along the Ohio River in Ohio, West Virginia, and Pennsylvania. Custer has over 30 years of experience in site selection, economic incentives, and corporate real estate both domestically and internationally. He has completed countless projects including data centers, distribution centers, headquarters, domestic and international manufacturing plants, retail, and information technology operations. Custer has written and been interviewed for a variety of business, site selection and real estate publications detailing his expertise in site selection, petrochemicals, plastics, and energy services.

Custer has in-depth knowledge of petrochemical, plastics, steel, and energy projects throughout the Ohio River area. Custer has been involved with numerous site selection assignments for natural gas power plants and renewable energy projects. Custer is currently working on RNG, solar, hydropower, hydrogen, carbon capture & storage, and small modular reactor (SMR) projects requiring existing or readily attainable infrastructure that the Ohio River region provides. Custer has been tasked to locate project locations from 5-10 acres to over 2,000+ acres for companies, family offices and land bank investors.

Bryce A Custer
Ohio River Corridor, LLC
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