The following commentary was written by Sophie Loeb, policy analyst at the Center for Progressive Reform, and Michelle Carter, director of clean energy campaigns at the North Carolina League of Conservation Voters. See our commentary guidelines for more information.
If your energy bills seem high this very hot summer, brace yourself. Without drastic measures to curb pollution, summers will be hotter and staying cooler will be more expensive. Unfortunately, the biggest strain on our future electricity bills isn’t our air conditioning, our electric cars, or even our businesses — it’s artificial intelligence (AI).
Data centers have been consuming power all over the country since the 1960s. As the Internet has rapidly been integrated into our lives, so too have data centers. Big data’s assault on North Carolina continues unabated, creating more demand on our energy system and raising our bills.
The new wave of artificial intelligence has the power to change the very nature of our society, in many ways for the worse. Data centers running AI require a constant and consistent power supply, something the utilities in the Southeast have struggled with for decades. These centers raise our bills while providing virtually no benefits to our communities. Data centers across the nation have been given tax incentives, lower electricity rates, and have created few jobs for the amount of resources they use.
As more energy intensive industries take root, we must protect our residents from both the increases in our power needs and our monthly power bills. Unfortunately, Duke Energy’s plans to meet the growing needs of industry expose us to further financial and health risks. Duke Energy claims that their plan, which proposes the biggest methane gas build out in the nation, is needed to meet growing demand, particularly for data centers.
Duke has also warned that ratepayers’ bills will rise if they don’t build these plants, but the opposite is true. Building out solar and utility-scale battery storage instead of gas would yield $8 to $12 billion in electricity savings by 2030 and $18 to $23 billion in savings by 2050. An Environmental Defense Fund (EDF) analysis shows that, for Duke Energy Carolinas customers, increases in fuel costs account for roughly 67 percent of rate increases since 2017. The research is clear: more dirty methane gas means higher energy bills, both now and in the future.
According to Goldman Sachs, data centers will require a $50 billion expansion in electricity generation infrastructure to meet the industry’s demand. This money to build big power plants will come directly from North Carolina consumers like you and me without proper protections from the state.
Why should residential customers, particularly those who struggle to pay their energy bills, pay for these costly plants? Who really benefits from the environmental, social, and economic burdens of artificial intelligence?
Unfortunately, protections from the pressures of data centers are nowhere to be found — for now. Duke Energy has undertaken deals with Microsoft, Google, and other major power consumers to expand renewable generation and protect our grid. Through these agreements, large customers can transition to clean energy while lessening the burden of their power demands on the rest of Duke’s consumer base.
Data centers must be subject to these same agreements — and more — to keep North Carolina ratepayers safe from massive price increases. Consumers deserve transparency and accountability with any new data center project in our state.
In lieu of data centers, North Carolina should invest in good, clean energy manufacturing jobs that promote economic development, resilience, and environmental sustainability. Already, the Inflation Reduction Act is slated to create almost 40,000 jobs by 2030. Tech companies could support these efforts with electric vehicle manufacturing plants, solar panel and battery storage manufacturing facilities, and further build the Southeast as a hub of clean energy manufacturing.
To better center people over tech companies and promote an affordable energy transition:
Utility commissions should require utilities to highlight explicit data on load growth from data centers so additional capacity is not passed on to residential customers.
Regulators should prohibit data centers from receiving subsidized industrial use rates.
The General Assembly should pass legislation enhancing stronger consumer protection laws for electricity ratepayers.
The state should form an Office of the People’s Counsel to protect customers from absorbing rate increases from industrial customers like tech companies.
As temperatures get hotter, there is no doubt our energy bills will go up. However, we must do everything we can to prevent massive projects from raising our bills even more. Investing in energy-draining artificial intelligence data centers not only increases electric rates for everyone, it takes away valuable jobs for rural communities. It’s time to invest in people over profits in North Carolina!
Commentary: Footing the power bills for AI is anything but smart is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.
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