Amazon Says Berkshire Utility Failing to Power Data Centers

3 hours ago 2

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(Bloomberg) — Amazon.com Inc. alleges that a Berkshire Hathaway Inc.-owned utility in Oregon is failing to provide sufficient power for four new data center facilities, highlighting the strain rapid expansion of technology facilities is putting on the electric grid.

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Amazon lodged a complaint last week with the Public Utility Commission of Oregon alleging that Portland-based PacifiCorp breached obligations that date back to 2021 to provide sufficient power for the projects. Amazon said the company provided insufficient power for one data campus, no power for a second campus and “has refused to even complete its own standard contracting process for the third and fourth Data Center Campuses.”

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Amazon data centers are used for cloud computing, mobile apps and streaming services.

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The dispute arrives at a moment when President Donald Trump is putting the full weight of the US government behind speeding up the development of artificial intelligence data centers along with the energy supplies needed to power them. Electricity demand from AI computing is expected to more than double in the US by 2035, according to an analysis from BloombergNEF.

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Amazon had no immediate comment. Representatives of PacifiCorp didn’t immediately respond to a request for comment.

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Big tech firms and power companies have been forced into a symbiotic relationship by the massive electricity consumption of data centers and AI. Utilities are eager to build infrastructure and sell power to new deep-pocketed tech customers, but are also struggling to protect other customers from bill increases as well as themselves in the event the AI boom turns out to be a bubble.

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—With assistance from Michelle Ma and Josh Saul.

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(Updates with background in the last paragraph.)

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