Levelized cost of electricity (LCOE)

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Gas, Nuclear, Renewables Battle Over Power For Meta's New Data Center
Forbes· 2025-05-27 21:05
Core Insights - Meta is planning to build its largest AI data center in Richland Parish, Louisiana, with a total area of 4 million square feet and a cost of $10 billion, requiring additional electricity from three new gas-fired power plants with a total capacity of 2,260 MW [1][2] - There is political pushback regarding the environmental impact of using natural gas for the data center, with concerns raised about Meta's carbon footprint and its commitment to net-zero emissions [18][19][20] Energy Sources Analysis - Natural gas is currently a significant energy source in the U.S., producing over 115 billion cubic feet per day and accounting for 43% of grid electricity [3] - Coal is being phased out, with about 200 coal-fired power plants remaining, which are expected to close by 2040 due to environmental concerns [4][5] - Renewables, particularly wind and solar, are gaining traction, with 90% of new energy in the U.S. in 2024 expected to come from these sources [11][12] - Nuclear energy is being promoted as a potential major energy source, but it faces challenges such as high costs and safety concerns [9][10][7] Cost Comparisons - The levelized cost of electricity (LCOE) for renewables is currently lower than that of nuclear energy, with projections indicating that by 2030, SMR nuclear energy could be at least three times more expensive than renewables in Australia [15][17] - Battery storage systems (BESS) are experiencing significant growth, with a record of 200 GWh globally last year and expected to rise to over 4 TW by 2040 [8] Future Considerations - The construction of new data centers driven by AI will necessitate ongoing decisions regarding energy sources, with a strong emphasis on sustainability and reducing carbon footprints [21]