BOSTON – Rising electricity demand from U.S. data centers risks deepening America’s reliance on fossil fuels and can put consumers and communities at risk, according to a report released Thursday. The report, Big data centers, big problems: The surging environmental and consumer costs of AI, crypto and big data, by Frontier Group, U.S. PIRG Education Fund, and Environment America Research & Policy Center reflects growing concern about the environmental and other impacts of powering technologies such as artificial intelligence (AI) and cryptocurrency.
“New technology can be part of a brighter future, but not if it keeps us tied to the dirty energy sources of the past,” said Quentin Good, policy analyst with Frontier Group and one of the report’s authors. “The impact on consumers and the environment from data center expansion isn’t theoretical; it’s real and it’s happening right now.”
The report shows that between 2021-2024, the number of data centers in the U.S. roughly doubled from 2,667 to 5,381, and that number is expected to keep growing. Electricity demand to power these centers is projected to increase as well.
The report identifies at least 17 fossil fuel-generating facilities that have delayed their anticipated closures or are at risk of being kept open longer than planned due to rising electricity demand. In many cases, much of that demand is for data centers. Additionally, at least 10,808 MW of new fossil-fuel powered electricity generation is being planned to meet increasing electricity demand nationwide. The report also highlights proposals to resurrect expensive and dangerous nuclear power plants solely to serve data centers.
“People across the country are trying to square the benefits that technology can bring with the real and growing impacts on the environment and consumers,” said Johanna Neumann, senior director of Environment America Research & Policy Center’s Campaign for 100% Renewable Energy and one of the authors of the report. ”We hope this report conveys the scale and urgency of the challenge and provides ideas that communities and decision-makers can use to minimize the impact.”
Data centers can also increase utility prices for consumers, and the cost of incorporating them onto the electric grid can be passed onto other ratepayers.
Given the growing impact of data centers, the authors recommend that policy makers:
- Ensure that virtually all energy use at data centers is powered with renewable energy, and take full advantage of opportunities to improve the energy efficiency of data centers and reduce their impact on the grid.
- Improve transparency regarding energy and water use by data centers.
- Consider the societal value provided by AI, cryptocurrency and other forms of energy-intensive computing to ensure that the value they provide exceeds the costs they impose on the environment, consumers and communities.
Experts will discuss the report’s findings further and be available to answer questions at a live webinar on Thursday, Jan 23, 2-3pm ET. The webinar will take place via Zoom. Here is the link to RSVP.
