Energy Secretary Jennifer Granholm on Thursday urged artificial intelligence companies to provide clean energy for their new data center projects, warning that spiked demand on the electricity grid risks backlash from local communities.
“If that extra power cost is put on everyday citizens, then there will be no desire to see these data centers permitted and placed in the United States,” she said at the AI+ Energy Summit in Washington hosted by the Special Competitive Studies Project, an AI-focused nonprofit. “Many of the data center companies have said ‘we are willing to do this.’”
Experts predict AI, a catchall term for software products that emulate human intelligence, will help drive a near-term spike in U.S. electricity demand. The expected increase — also fueled by electric vehicles and broader electrification of the economy — follows roughly 15 years of stable grid demand.
Increases in demand often cause utilities to raise rates, meaning households could get stuck with higher bills if data centers set up shop in their area. Electricity costs have already risen substantially in the past several years, driven largely by increases in transmissions costs.
