Skyrocketing energy demands from artificial intelligence, cryptocurrency mining, and other data centers are slowing the United States' progress toward a cleaner future, but it doesn't have to be that way, according to Environment America.
What is happening?
The advocacy organization writes that "a dramatic surge in electricity demand from U.S. data centers is not inevitable." However, it will require significant investment from policymakers to keep the industry on a track that aligns with the renewable energy transition, which intends to prevent the worst effects of the human-caused rising global temperatures.
AI and crypto mining are notoriously energy-intensive practices. Though some of the world's largest tech companies have pledged to make their operations greener and the latter sector appears in the midst of such a move, there are questions about the sincerity of these changes and concerns about underreporting. Also, much of the U.S. grid is powered by the burning of dirty fuels such as coal and gas, which means more solar, wind, and other clean-energy infrastructure is needed.
Environment America noted that 2023 electricity demand levels could grow by 166% by 2030 but that projections vary greatly. The low end of growth is 29%, according to data from the Electric Power Research Institute.
Why is this important?
The organization pointed out that the retirements of 17 dirty fuel units at seven power plants have been or could be delayed because of a fear that the power they generate may be needed down the line, particularly to support data centers. These facilities produce 9,100 megawatts, and there are plans for 10,808 MW more.
If this much power is not needed, though, or if it's supplanted by clean power, it will be a wasted endeavor. If it is needed, the production of heat-trapping pollution will continue to mar human health, natural biodiversity, and the planet. This path is unsustainable, producing the 10 hottest years on record in the last 10 years.
There are other problems with data centers. They can consume millions of gallons of water daily and create noise pollution that ruins people's quality of life. In Norway, the closing of a crypto mining operation that likely used renewable energy caused a rate spike for residents.
How renewables help with energy demand
"The cost of investments in new generating capacity could be passed off to taxpayers and utility customers, especially if demand for electricity is overestimated," Environment America stated. "Concerns among regulators and utility customers are well-founded: Data centers have been cited as a root cause of an expected 20% increase in utility prices in 2025 in the Mid-Atlantic region."
It noted that lawmakers and public utility commissions can head this off by mandating efficiency standards, pushing clean energy, and "avoiding unnecessary, damaging, or wasteful" computing.
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Definitely 👍 One key is for governments to require energy-hungry companies to engage with communitiesbefore they buy land as well as plan and build out data centers. Environment America also called for transparent reporting of energy and water use by data centers, agreements that protect individual ratepayers and hold corporations to account for service costs, and limits on enterprises such as energy-intensive proof-of-work crypto mining.
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