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Utility companies sign massive deals with growing industry in wake of AI revolution — here's what it could mean for public health

Experts predict that some systems will need as much power as entire countries in the not-too-distant future.

Experts predict that some systems will need as much power as entire countries in the not-too-distant future.

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Major utility companies are signing deals with data centers as artificial intelligence demand soars. And while the agreements may be good for their bottom lines, questions remain about how the AI revolution will impact public health.

What's happening?

As detailed by Reuters, data center operators in the United States are signing deals with utility companies to ensure the latter have enough energy to meet their demand. According to the report, Goldman Sachs estimates the centers will account for 8% of power generated in the country by the end of the decade — up from 3% in 2022. 

Utility providers that have agreed to power data centers include American Electric Power, which promised to produce an extra 15 gigawatts for centers by 2030, and AES, which will support Google's Ohio centers with 310 megawatts, per Reuters. 

Amazon Web Services in Pennsylvania will receive electricity from Talen Energy, while Xcel Energy will help power a Meta Platforms data center in Minnesota. All in all, Reuters listed more than 10 agreements to meet data center energy needs. 

Why is this important?

Reuters didn't provide details regarding the types of energy the data centers will run on, but given that the listed companies all depend on dirty fuels to some degree, it's fair to wonder how the uptick in AI usage will impact the public's long-term well-being. 

It is no secret that AI systems require massive amounts of energy. As the journal Nature explains, experts predict that some systems will need as much power as entire countries in the not-too-distant future. 

Moreover, the AI boom comes as the U.S. is grappling with an aging electrical grid that it must modernize to not only meet demand but also improve reliability. According to the Energy Information Administration, around 60% of the country's power still comes from dirty energy

When burned, fuels such as gas, oil, and coal spew toxic fumes associated with health problems and millions of annual premature deaths as well as drive the accelerated planetary warming that gives rise to more intense extreme weather events

What can be done to limit harmful pollution from AI?

Part of a grid upgrade includes investing in clean, low-cost energy such as wind and solar. Many utility companies around the country have committed to reducing their reliance on dirty fuels, including AES, Talen, and Xcel — all of which support major corporations. 

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It's worth monitoring whether these providers show progress toward upholding these promises over the years. If they fail to do so, and if you live in a state with a deregulated energy market, you may be able to hold them accountable by switching providers. (You could explore this option regardless, since adopting cleaner solutions can lower your utility bills.)

Meanwhile, companies such as Google and Microsoft are exploring nuclear energy as a more eco-friendly solution to support energy-gobbling data centers, while a simplified algorithm may help reduce the power needs of AI altogether.

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