What the Data Center Conversation Misses

Data centers are everywhere. In the media, in Washington, DC, or on Main Street, it's difficult to have a conversation of any sort without it veering into data center talk at some point. I was lucky enough to host a conversation with two executives, Marcus Krembs of Enel and Anna Dameo of Merge4, who are immersed in the data center industry and were willing to share their perspectives with attendees at Antenna House 2026.  

While the panel addressed more than a dozen salient issues affecting the data center industry, there were five big ideas that should be considered by anyone thinking through data centers, AI, and energy.

Can we realistically drive reliability, affordability, and sustainability? The answer is yes, but…

Marcus pointed out that the data conversation is rooted in the assumption that data centers are a liability to the grid and the communities that host them. The reality, however, is that a data center can be a grid asset and if operated efficiently, can be an asset to the host community as well. Anna agreed but added that it is crucial that the narrative reflect that data centers aren’t just big boxes consuming large amounts of electricity indiscriminately. Technology increasingly allows data center and grid operators to dynamically adjust how and when electricity is consumed. When optimized properly, the question is not solely how do we generate enough electricity for AI. If we can get the system to work optimally, we can realistically drive reliability, affordability, and sustainability.  

Energy Literacy is a must ‍

Energy infrastructure is incredibly complex and highly technical. For the vast majority of people, their only engagement with the energy ecosystem is at the gas pump and as utility rate payers. Anna shared a powerful analogy from the world of technology. Before consumers were willing to spend on technology, they needed to become computer literate. The same is true for the energy system. We all need to become energy literate in order to have a productive conversation about the impact of data centers, including both the costs and the benefits. Understanding what is connecting to the grid and how those resources interact with it is critical.  

Marcus agreed and pointed out that a lack of understanding contributed to the perception that data centers are massive usurpers of grid resources from an already constrained grid. There needs to be awareness of the potential grid services and benefits that data centers can provide, but the conversation is stymied by a lack of basic understanding of how the grid operates. The current data center narrative addresses the question of how much electricity it consumes. The more appropriate question is how it consumes electricity AND how that load can benefit the grid.  

The opportunity to turn massive loads into flexible resources 

While it is well known that data centers impose enormous loads, less understood is that technology can transform those loads into flexible resources that can shift or adjust certain computing workloads in response to grid conditions. According to Anna, the electricity system can sense, learn, interpret, and control in real time.

Marcus pointed out that this model fits into a much larger transformation underway on the demand side of the electricity system. There are gigawatts of potentially untapped capacity if VPPs, demand response, and other flexible resources are leveraged properly. However, technology alone can't bring flexibility to life. It requires regulatory structures and electricity markets to have mechanisms to compensate for these capabilities.

Once again, the reality is that the data center challenge cannot be addressed by generation alone. It will require all of the stakeholders to become more intelligent at managing demand.

Data Centers Can Accelerate the Modernization of the Grid

Data centers are seen as a liability the grid needs to accommodate, but Anna presented an alternative way to look at them. Utilities are traditionally risk-averse and late adopters of innovation and technology. Data centers, on the other hand, move at a manic pace, are obsessed with reliability, and are willing to assume the risk of deploying advanced physical infrastructure. As such, they provide a proving ground for innovations like advanced control and solid-state power that utilities are more conservative about adopting. 

From the electricity provider perspective, Marcus views data centers as creating the opportunity to redefine the relationship among energy generator, grid operator, and the customer. There is real value within the concrete walls of the data center that hasn’t been fully captured by the electricity markets.

A Grid Asset has to become a community asset 

As Marcus put it, both cogently and simply, the community conversation is straightforward. Data center stakeholders need to address, “How will this resource-intensive infrastructure project benefit my community and me?”

Vague promises of benefits are not enough, though that is an improvement over the initial approach to community relations, which was to say nothing and present the project as a done deal. Unsurprisingly, public sentiment has turned extremely negative, and the anti-data center movement is moving forward at full throttle.

Although Enel does not own data centers, as a developer, owner, and operator of utility-scale power generation assets globally, it has extensive experience working with communities to identify win-win scenarios. Drawing on that experience, Marcus suggested that data center developers open storefronts on Main Street where residents can visit, ask questions about the project, voice concerns, and engage in a productive dialogue with project representatives. Communities want tangible answers to their concerns about affordability, reliability, economic development, environmental conservation, and other local priorities. 

The data center buildout is a global phenomenon, but permission to build is a local challenge. As Anna advised, there is no one-size-fits-all approach to community engagement. The data centers that get built will internalize the need to engage at the grassroots level and approach each community with nuance and sincerity. 

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