The rapid growth of artificial intelligence presents challenges for electric cooperatives throughout the nation. AI relies on data centers, which require massive amounts of electricity. As these technologies expand, power consumption is rising significantly.
The U.S. Department of Energy reports data center electricity use has tripled in the past decade and is projected to double or triple again by 2028. The facilities are expected to account for up to 12% of total U.S. electric consumption by 2028. To put this in perspective, the state of Texas accounted for 15% of the nation’s total energy use in 2023, according to the Energy Information Administration.
What Are Data Centers?
Data centers house computers that store, process and analyze data. They serve the large scope of modern society’s computing needs, such as web searches, running AI, cloud-based data storage, smartphone applications, video streaming and cryptocurrency mining. The complexes also contain processing chips, storage hardware and networking equipment.
Energy Demand
There is substantial uncertainty surrounding data centers and energy availability for the future.
While these facilities can be constructed and operational in two to three years, broader energy systems capable of meeting the increased electric demand require longer lead times and significant financial investment.
Moreover, the Environmental Protection Agency’s 2024 power plant rules forced the closing of many on-demand electrical generation facilities, reducing availability and driving up prices for electric co-ops and consumers. The timing of this, in conjunction with the rise of AI, is of particular concern.
Preparing for the Future
The expansion of AI is inevitable, yet advantageous in many ways—including major advancement in medicine and science. However, the combination of decreased electric supply and increased demand is causing rising prices in the power market.
Electric cooperatives across the U.S. are proactively developing strategies to protect members while also serving data center power needs.
