March 27, 2025
Authors
Neil Kolwey & Howard Geller
The Southwest Energy Efficiency Project’s (SWEEP) report examines the growing electricity demands of AI-driven data centers in the Southwest, as well as nationally and globally. Major utilities are facing challenges in meeting these needs while maintaining clean energy goals and preventing cost burdens on other customers. This report highlights strategies some utilities are adopting, such as requiring data centers to pay for their own generation and transmission infrastructure and offering renewable energy purchasing options. It also provides recommendations for utilities, states, and IT companies to address these challenges while minimizing impacts on the grid and the environment.
