In the era of artificial intelligence, data centers have become the silent engines powering our digital world, but their relentless thirst for electricity is sparking questions about sustainability and the future of global energy demands.
I didn’t write that sentence, ChatGPT did.
Artificial intelligence. Depending on what you believe, it’s either going to save us or destroy us. In the energy sector, it is certainly a heavily discussed development because it poses unique challenges and opportunities for the reliability and resilience of the electric grid system.
AI-driven data centers run high-performance computing tasks like machine learning, natural language processing, and image recognition. Those processes require massive amounts of electricity. Recent estimates suggest that data centers already account for around 1–2% of global electricity consumption, and with the surge in AI, demand is expected to rise.
In the U.S., AI demand alone could add up to 20% of our power needs over the next decade. At a time when we barely have enough power to serve the need today and political and regulatory headwinds have greatly slowed down the development of new power plants, that kind of growth in demand for electricity seems daunting.
AI data centers tend to operate continuously, leading to a higher base load on the grid. This constant demand can strain existing infrastructure, particularly in regions without robust power supply systems. They can also create unique challenges when we have moved away from 24/7/365 power plants to intermittent power producers, like wind and solar.
The bellwether for this tension is Northern Virginia, which houses nearly 50% of all U.S. data centers. Today, those facilities demand a whopping 2.8 GW of power, and that is expected to grow to over 20 GW in the next 15 years. To put that in perspective, Michigan’s total electric load is 20 GW.
While Michigan is by no means a data center haven, we do anticipate data center growth here as well. As we prepare for that growth, projects like the Palisades Nuclear Power Plant restart and the future development of small modular nuclear reactors on that site are vital to ensuring we have the energy we need to serve those data centers.
While AI causes challenges, it also poses solutions that can be used to manage the rising demand for electricity. AI can help us better predict energy demand. By analyzing real-time data, AI models can forecast electricity load patterns and respond proactively, minimizing blackouts and reducing the need for costly, unplanned maintenance.
AI can also help consumers optimize their own energy use. Smart meters and connected home devices use machine learning to identify energy usage patterns, allowing households and businesses to reduce consumption and save costs without sacrificing comfort.
Back to the question we started with—will AI destroy us or save us? Probably neither. But it is an inevitable part of the future and we must plan today for that future. Or at least that’s what ChatGPT told me when I asked it.
No way will I support the installation and use of smart meters. When I spoke to you about this a few months ago you assured me that you would not be install in smart meters. Please make your promise stick.
Hi McKenzie – rest assured, nothing has changed with our metering system plans. We are still installing the same metering system we’ve been talking about for the last several years. You can find information here: https://cherrylandelectric.coop/metering/.
I see this neglected or missed opportunity of past and now, sudden demand for energy as a regulation problem more than a do or die electrical production problem. The auto industry in Michigan has taken different approach to solving this need for energy. Ford motor has partnered with DTE to produce and even distribute energy for its Detroit area plants with giant non lithium batteries and massive solar and even state of art developing energy production sources. The Auto industry knows the effects of competition on market share and staying in business. GM has partnered with Toyota in battery technology and installation of solar and wind subsidies. Data processing plants need to required by law to provide for the necessary energy production and thus plant distribution of all available energy sources. The areas of federal programs like TVA and sun deserts in the South and Southwest must be utilized. Processing data plants must pay their way into the grid structure and then invest their growth in that grid. This is more of how you and I vote for our government problem than a electrical utility problem.
David – it becomes a grid problem if the production facility needs the grid to back it up at anytime in the year. The examples you cite are very interesting and innovative but those manufacturing facilities are still tied to the grid and use it for power. Data centers are generally taking a similar approach. They are open to and willing to invest their own capital into developing power production but need the stability and reliability of the grid also. As I mention in my video on this subject, this can absolutely be a win-win proposition if we can harness that private investment into resources that power data centers and make the grid as whole more reliable and resilient. Thanks for the comment, this is such an interesting area of opportunity and growth in the nation’s economy and for our power systems.
Thank you so much for the these updates. I really appreciate the increase in communication from Cherryland.
How can the members of Cherryland Electric get engaged and help promote the changes in policies that will need to happen to increase the baseline electrical generation.
I fully understand wind and solar can only do so much (great for peak demand), but those are not a reliable source for baseline (24/7) energy supply for the grid. We need new baseline electrical generation plants, and yes folks that means Nuclear, Natural Gas, and Coal.
Thanks for the question, Joe. The most impactful thing you can do is remind your legislators that reliable, affordable electricity matters to you and is an issue you consider when voting. As you rightly point out, we need 24/7/365 generating resources that keep the lights on and help us keep bills affordable. Renewables do have a place in our portfolio, but a good portfolio is diverse and balanced. We never want to have all of our eggs in one basket.