US utility First Energy has reported that its pipeline of potential data centers has surged to 2.6GW by 2029, according to its Q4 results.
This is almost double its reported pipeline in November of last year, with First Energy utilities set to have potentially 5.5GW of data center load by the end of the decade, including existing and contracted facilities.
Overall, First Energy expects its load growth to grow 2.4 percent a year over the next five years, with industrial sales, including data centers, increasing by 5.1 percent.
To meet the new demand, First Energy is considering delaying the retirement of its coal-fired generation or replacing it with gas-fired generation. Currently, the utility has 3GW of coal-fired generation in West Virginia set for retirement between 2029 and 2035.
The utility would spend between $4 billion and $6bn to replace the coal-fired capacity with 3GW to 4GW of gas-fired generation. Brian Tierney, FirstEnergy chairman, president, and CEO, says this would “make a lot of sense, replacing the thermal generation that we have and allowing for growth and economic development opportunities.”
First Energy reported that the expected 10 percent tariffs on imports from Canada and Mexico could have an “adverse effect on our results of operations, cash flow, and financial condition.”
The utility also warned of the risk of electricity demand outstripping supply. “Competitive market forces or adverse regulatory actions may require FirstEnergy to purchase capacity and energy from the market or build additional resources to meet customers’ energy needs in an expedited manner,” the company said.
First Energy utility companies serve more than six million customers across Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.
Late last year, the utility, alongside Dominion Energy Virginia, and American Electric Power, signed a joint planning agreement to develop proposals for new regional transmission projects in the PJM market.
These projects include the construction of several new 765kV, 500kV, and 345kV transmission lines across Virginia, Ohio, and West Virginia.
