Idaho’s energy future presents challenges and opportunities for both business and the state. Idaho businesses need to know that both their present and their future energy needs can be met, and in a way that meets their own sustainability goals and commitments. But the state faces challenges in its reliance on hydroelectric power and the need to modernize infrastructure to accommodate growing energy demands. And state energy plans are important for attracting new business and business expansion for the state.

On October 29, Boise State University students and faculty gathered with community members to explore energy in Idaho, at the fall 2024 Business Ethics Roundtable, Power Tomorrow: Idaho’s Energy Future. The dinner table conversations focused on the intersection of government, business, and community actors, as reflected in the power purchasing agreement that will bring a Meta data center to Kuna, Idaho.

Understanding Energy

Energy strategy is a complex mixture of the availability of resources, public policy, and preferences. Major greenhouse gas emitting countries, such as the United States and China, are rich in fossil fuel resources and use those as primary sources of energy. Similarly, the state of Idaho has abundance water resources, making hydropower the dominant energy produced in-state. But energy strategy is also a function of preferences and policy. For example, France and Germany have diametrically opposed approaches to nuclear energy. France values the energy security it derives from nuclear power, while Germany views nuclear power through a risk lens. U.S. states are largely waiting for a federal solution to the problem of disposing of nuclear waste before expanding the use of nuclear energy.

Business has its own perspective on the future of energy, with large tech companies taking part of their energy future into their own hands. Amazon, Google, and Microsoft have all invested in nuclear power companies to secure the electricity needed for their data centers. The companies are looking not only to ensure a reliable supply of energy, but to do so in a way that meets company climate-related goals. Increasingly, companies are looking for zero carbon energy sources and that is pushing utilities like Idaho Power to respond.

Meta Comes to Idaho

The increase computing needs of artificial intelligence (AI) are pushing technology companies to build new, larger data centers. Idaho tax incentives for data centers made the state an attractive option for Meta and the company is now constructing an $800,000,000, 960,000 square foot data center on the east side of Kuna.

Meta’s sustainability goals include a commitment for the company to have net zero carbon emissions by 2030 and to power its operations with 100% renewable energy. Thus, the challenge of powering the data center is to find enough power from renewable sources to meet Meta’s goals. Idaho Power’s in-state energy production is largely from renewable sources, but not exclusively. To meet its goals, Meta was the first to use Idaho Power’s Clean Energy Your Way program. Through the program, Meta contracted with solar power companies rPLUS Energies and Matrix Renewables to construct a $200,000,000 solar project which will feed renewable energy into Idaho Power’s grid.

Rising Challenges for Idaho’s Energy Future

Following several challenges related to Idaho’s Energy Future have emerged out of healthy roundtable discussions.

Lack of Information Regarding Energy Systems: Due to the high reliability of the electrical grid in the United States, many people are not fully aware of how electricity is generated or the environmental impacts of different energy sources. Power plants use diverse energy sources like fossil fuels, hydropower, wind, solar, geothermal, and nuclear—each having different advantages and drawbacks. Fossil fuels emit greenhouse gases (GHG), while renewables like solar and wind are clean but not consistently available.

Nuclear energy is often misunderstood and feared, mainly because of the accidents like Chernobyl and Fukushima. These incidents have created lasting apprehensions around nuclear safety. Despite substantial advancements in nuclear safety and technology, many people are still hesitant about using nuclear energy.

Energy Conservation: As discussed above, a lot of people in the U.S. aren’t fully aware of what goes into generating electricity, so it’s easy to take energy for granted and overlook how small changes in our usage can add up. If more people understood how their daily habits impact energy demand and fuel use, it could make a big difference. Simple actions like switching off lights when they’re not needed or running appliances during off-peak hours—could save tons of energy and cut down on greenhouse gas emissions.

Politicization of Energy: Energy is a deeply politicized topic in the U.S., sparking heated debates around issues like carbon taxes to reduce greenhouse gases. On the other hand, nuclear energy, despite its potential, is often avoided by politicians due to lingering fears and misconceptions among the public. According to roundtable discussions, any party that will lean towards carbon tax and nuclear energy will have to face serious backlash. Participants called it a “political suicide” for that political party. This makes it hard for leaders to push forward with bold energy policies, as they must weigh public perception and political consequences carefully.

Privatization of Nuclear Energy: With tech giants like Google and Amazon exploring nuclear energy to power their AI systems and data centers, questions are surfacing around whether such high-risk energy sources should be managed by private companies or not. At a recent roundtable, many felt that private companies should only step into nuclear energy when the technology has reached a level of maturity and safety that the public can trust. Until then, there’s a real concern about the risks of putting nuclear power in private hands without strict oversight and proven safeguards.

Key Takeaways and Questions

The following are the key takeaways and questions that emerged from this roundtable discussion.

• Switching to new energy sources is not only part of what the U.S. needs to address in its electrical system. Much of the infrastructure like grid stations and transmission lines is aging, and this raises serious concerns about the reliability of electricity supply in the near future. As the country moves away from hydrocarbon fuels toward renewables, the government also needs to invest in modernizing the infrastructure to ensure it can handle the increasing electricity demand.
• There’s a huge need to raise awareness and educate people about renewable energy sources, especially the advancements in nuclear technology, like Small Modular Reactors (SMRs). SMRs are far safer and more reliable than older, larger nuclear plants. Overcoming the “Not In My Backyard” (NIMBY) attitude is key, too, particularly when it comes to nuclear energy. By understanding how these newer technologies work and their safety improvements, people might feel more comfortable with nuclear as a sustainable energy option for the future.
• The discussion highlighted how Public-Private Utility Partnerships have accelerated the shift toward electrifying energy consumption. Many home and business appliances that once relied on other fuels are now using electricity. For example, gas stoves were once standard in homes, but electric stoves have become increasingly common these days. As a need of time, it’s also important to consider diverse energy sources and not rely too heavily on electrification alone.
• Energy conservation and Energy conversations are some of the easiest, most immediate steps we can take without heavy costs. Homeowners and businesses can start saving energy simply by turning off unnecessary appliances, whether manually or through Smart Home tech using Internet of Things (IoT). Also, smart grid systems and energy-efficient appliances can also make a big impact to cut down energy use across the board. Beyond that, we need more open public discussions about energy—outside of regulatory channels—where people can set the agenda and steer the conversation to build awareness around U.S. energy systems.

Final Thoughts

The energy agreements between Meta, Idaho Power, and rPLUS Energies reflect a new energy reality. As companies continue to incorporate sustainability goals into corporate strategy, states and public utilities will need to respond with policies and programs that can move energy supply away from fossil fuels and toward easier incorporation of renewable energy solutions.

Thanks to the participants at the fall 2024 Business Ethics Roundtable. If you would like information on the next Business Ethics Roundtable, please contact Professor Ruth Jebe, Hansberger Endowed Chair in Business Ethics, at rughjebe@boisestate.edu.