New York and New Jersey residents are facing increased electricity bills due to the energy demands of AI data centres. These facilities, vital for powering AI projects from major companies like Amazon, Google, Meta, and Microsoft, consume vast amounts of power, straining the existing grid. The problem is compounded by the closure of nuclear power plants and the implementation of green energy mandates in both states.
Data centres require significant power for rows of computers, servers, and cooling systems. The rapid growth in data centre power usage has led to substantial increases in power costs. One data centre can require the full capacity of a small nuclear plant. This surge in demand is projected to continue, with data centres expected to account for a significant portion of increased power demand in the coming years.
Possible solutions include requiring data centres to generate their own power or contracting with developers to build dedicated power plants. Some states are exploring more binding solutions to address the rising costs. The situation has prompted investigations into grid operators' practices and discussions about how to manage the increasing energy demands of AI.
