Datacenters are hoarding grid power just in case, says Uptime Institute

Datacenters are preventing other energy users from connecting to the grid by reserving far more power than they need, according to a new Uptime Institute report shared with The Register.

The advisory body found that datacenter power use remains largely constant, with major demand changes typically coming from business expansion. Operators routinely reserve excess capacity for potential future growth, blocking other users from that allocation even though it sits unused.

The problem stems from how grids operate: Grid operators can’t expand networks without lengthy regulatory approval, and capacity is allocated strictly on a first come first served basis. This prompts developers to reserve power for projects that may never be built, while datacenter operators apply for more than they need to accommodate future growth and planning uncertainty.