The AI Boom and Coal

The coming AI boom could keep coal and gas alive

by Kathryn KrawczykJune 19, 2024

Have you had a conversation with ChatGPT, experimented with Google’s email-answering generator, or used an AI-enhanced search on Bing or Facebook? All those AI-enabled activities take a lot more data processing than a regular internet search or scroll. And more data processing means more data centers — and more electricity to power them. Analysts predict these facilities, which house servers that send and store tons of data, could account for as much as 9% of U.S. energy demand by 2030. Virginia has earned the nickname of “Data Center Alley,” as it’s home to servers that see about 70% of global internet traffic, according to the Wall Street Journal. But as more devices connect to the internet and as AI drives up data demand, data center developers are looking for new places to locate these facilities.

With its cooler climate, abundant water, and relatively mild weather, the Midwest may serve that niche, the Energy News Network reports. And clean energy advocates say data centers could help juice renewable energy development; Microsoft, for example, has promised to build renewables in Wisconsin to help make up for the power its planned data centers will use. Former coal plants and industrial facilities also make good homes for data centers since they’re already connected to the power grid.

But data center proliferation across Virginia and the Southeast is also provides a cautionary tale for clean energy. Utilities across the region have announced plans to build new gas plants and keep coal plants open longer, often citing data centers’ energy needs as part of their reasoning. Read more about the promise and perils of a Midwest data center boom at the Energy News Network.

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More clean energy news

Where climate funding goes: More than three quarters of the Inflation Reduction Act’s $34 billion of announced investments have gone to congressional districts represented by Republicans who voted against it, an analysis finds. (CNN)

Small nuclear fires up: The U.S. Energy Department announces $900 million for small nuclear reactor development, which along with a bipartisan federal bill to reduce fees and speed permitting could boost the industry. (E&E News, The Hill) Benefits for EV buyers: U.S. electric vehicle buyers have received more than $1 billion in point-of-sale rebates since the Treasury Department launched the instant incentives in January, discounting an estimated quarter of the 600,000 EVs sold so far this year. (E&E News)

Whatever floats your solar panel: Covering around 10% of the world’s lakes and reservoirs with floating solar panels could generate enough electricity to power the United Kingdom four times over, and could be used to cover all power use in some small countries, scientists find. (Grist) What’s the holdup? Supply chain and interconnection delays are stalling large renewable energy projects across the Midwest, despite new efforts in Minnesota, Illinois and Michigan to speed up permitting. (Inside Climate News)

Use ‘em or lose ‘em: Inflation Reduction Act funding for home energy rebates will likely remain mostly unspent until after the November election; Trump allies have indicated he would revamp the program and jeopardize the funding if he is elected. (E&E News)  Lining up grid wins: An organization pushing to build transmission lines along highways recently scored a legislative win in Minnesota, and now looks to expand the policy to other states. (Canary Media) FERC fills up: The U.S. Senate confirms three nominees to the Federal Energy Regulatory Commission, filling the five-member board as it prepares to guide the nation’s grid buildout. (E&E News) Ten years later: Federal regulators approve the long-delayed Mountain Valley Pipeline to enter service after a decade of regulatory, legal and on-the-ground battles. (Roanoke Times)