Utilities are grappling with increased electricity demand from AI data centers, prompting developers to explore self-generated power. In Georgia, one developer’s attempt to bypass long waits for electric grid connections has encountered issues.
Georgia is a hub for data centers, leading some companies to seek alternative power solutions. Serverfarm has become the first in the state to attempt a “pop-up” power plant. The company enlisted Houston-based VoltaGrid to construct a natural gas power plant adjacent to its data center. However, environmental groups and state regulators assert that construction began without the necessary environmental permits, potentially breaching state utility regulations.
Concerns arose when a local resident noticed construction activity near Covington, approximately 30 miles from Atlanta. By June, it was reported that six of VoltaGrid’s planned 33 natural gas engines were already installed, even though an air permit had not yet been granted.
VoltaGrid had applied last year to the Georgia Environmental Protection Division for permits to construct and operate a 90-megawatt natural gas plant for Serverfarm. The federal Clean Air Act, enforced by Georgia, mandates acquiring an air permit prior to starting construction.
“Permitting allows regulators and the public to assess a project’s environmental impact,” stated Jennifer Whitfield of the Southern Environmental Law Center. “Starting construction before this process is illegal.” Two weeks after the resident’s report, Sustainable Newton, Altamaha Riverkeeper, and the Southern Environmental Law Center urged the Georgia Environmental Protection Division to investigate.
In addition to the six generators under construction, these groups claim that Serverfarm commenced its own construction early. The plan involved 37 diesel backup generators, and aerial images revealed that 36 had already been established.
This issue highlights similar disputes nationwide. Recently, environmental groups notified two San Antonio-area data centers, including VoltaGrid, of their intent to sue for permitting on-site natural gas plants as minor rather than major polluters.
Neither Serverfarm nor VoltaGrid responded to comments. However, a Serverfarm spokesperson informed The Atlanta Journal-Constitution that all project actions were taken with jurisdictional consultation. Following the investigation, the Georgia Environmental Protection Division cited both companies for starting construction without permits. While Serverfarm received an air permit for backup generators, further actions or penalties regarding the violations are pending. VoltaGrid must halt construction.
Residents have raised concerns about the project’s pollution impact and its proximity to water resources, neighborhoods, and nature reserves. The engines are expected to emit harmful pollutants, and permitting violations have intensified worries about unassessed impacts.
“Communities deserve transparency when industrial projects are proposed near them,” said Maurice Carter, Sustainable Newton’s president. The Southern Environmental Law Center emphasizes that permit applications do not guarantee approval, as regulators may demand additional control measures.
Beyond permitting issues, the project may face scrutiny from the Georgia Public Service Commission. The Georgia Territorial Electric Service Act grants utilities exclusive rights to provide electricity within specific territories. The Commission’s decision could set a precedent for pop-up power plants in Georgia.
Implications could extend to non-utility renewable energy projects, as advocates argue that accommodating natural gas plants should also apply to solar projects. “What applies to one should apply to both,” Whitfield stated.
Original Story at insideclimatenews.org