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OPINION:
Oh, the irony of our artificial intelligence overlords: Silicon Valley’s geniuses, busy conjuring chatbots that can write your grocery list or compose bad poetry, are quietly sucking the life out of our electric grids. While Big Tech rakes in trillions of dollars, everyday Americans are left holding the bag — literally, in the form of skyrocketing utility bills.
The data centers powering AI are devouring electricity like a kid with an unlimited candy stash, and it’s high time we force these cash-hoarding behemoths to build their own power plants or buy directly from generators. With more than $368 billion in collective cash reserves — yes, that’s Apple, Microsoft, Alphabet, Amazon, Meta and Nvidia lounging on mountains of money — they can certainly afford it.
Instead of leeching off the public grid and driving up costs for the rest of us, let them generate their own juice and sell back the excess, easing the strain on consumers. It’s not rocket science; it’s basic fairness.
Let’s crunch the numbers, shall we? AI data centers are energy vampires on steroids. In 2023, they guzzled about 4.4% of U.S. electricity, a figure the Department of Energy projects could triple to 12% by 2030.
Globally, the International Energy Agency warns that demand from these facilities could more than double by 2030, hitting 945 terawatt-hours, enough to power entire countries.
In the U.S., electricity consumption from data centers is slated to surge 130% by 2030, accounting for up to 44% of new demand and necessitating costly grid upgrades.
Who’s paying? You and me. Utility bills are already climbing, thanks to the Biden-era shuttering of reliable coal plants and the addition of huge amounts of part-time wind and solar. AI data demand is growing steeper as AI’s thirst grows.
One report calls it a “sharp rise” in bills, courtesy of infrastructure strains that hit households hardest.
This isn’t just about affordability; it’s about reliability too. AI demands 100% uptime. Those servers can’t afford a hiccup, lest your virtual assistant forget how to boil water. Grids are buckling under the load, risking blackouts and shortages. Deloitte estimates that U.S. AI data center power needs could hit 123 gigawatts by 2035, a thirtyfold jump, compromising grid stability.
Recent analyses show that data centers are doubling their consumption, forcing utilities to scramble and pass costs to consumers via rate hikes.
In states such as Virginia and Georgia, where data centers cluster, residents are already grumbling about inflated bills subsidizing tech giants.
Here’s the fix: Mandate that Big Tech build or buy its own electricity “before the meter.” Be their own generators, strike deals with producers, whatever; just don’t dump demand on the public pool or take away our needed supply. With Big Tech’s $368 billion war chest (and that’s conservative; quarterly revenue alone tops $100 billion for some), they could fund solar farms, wind arrays, natural gas and even nuclear reactors faster than you can say “ChatGPT.”
Then, let them sell excess power back to the grid, relieving pressure and potentially lowering rates for us plebs. In exchange, they get backup during maintenance shutdowns because even their shiny plants need tuneups.
Oh, and make them pay for grid interconnections. Why should ratepayers foot the bill for Big Tech’s reliability crutches?
This calls for legislative muscle. States such as Texas and California, already feeling the pinch, should lead with laws requiring data centers over a certain size to self-generate at least 80% of their power.
Congress could tie federal tax incentives for AI to energy independence mandates, or the Department of Energy could enforce grid-impact fees. A push for an Energy Department study on AI’s toll is a start, but we need action: bills that prioritize consumer wallets over corporate profits. (Snark aside: If Big Tech can afford to blow $350 billion on AI capex this year, it can spare some for not frying the grid.)
Enough with the free ride. Lawmakers, wake up. Enact these changes now, or we’ll all be paying premium for AI’s endless appetite.
• Frank Lasee is president of Truth in Energy and Climate.
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