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Artificial intelligence is driving soaring electricity demand, with data centers projected to account for 44% of U.S. load growth through 2028. Energy planning for data centers requires robust investment strategies amid volatile electricity prices and grid interconnection delays. This study introduces a regret minimization framework, inspired by decision theory and game theory, to optimize energy portfolios for data centers, with potential relevance to other energy-intensive sectors. Using hindsight benchmarks and historical back-testing, the framework employs deterministic optimization and full cross-validation to evaluate portfolio robustness through regret-based metrics. In a hyperscale data center case study, diversified portfolios combining solar photovoltaic (PV), wind energy, and gas turbines demonstrate lower regret than grid-only strategies and provide resilience to evolving regulatory requirements. Reducing grid reliance from 100% to 20% mitigates cost volatility and interconnection risks. Low-carbon technologies, like nuclear small modular reactors (SMR), become viable with reduced capital costs and limited land availability. This work offers a robust planning framework for optimal strategic investments not only for data centers but also for energy-intensive industries navigating the modern, volatile energy landscape.
Abdelhady et al. (Thu,) studied this question.