AI's thirst for power keeps coal fires burning bright

The increasing demand for energy from AI datacenters is leading to a resurgence in the use of coal-fired power plants in the United States. As companies like Google and Meta expand their datacenter operations, energy requirements have surged, forcing some power companies, such as the Omaha Public Power District, to abandon plans to phase out coal. This situation poses risks to air quality and public health, as coal plants continue to emit greenhouse gases. A report from Bain & Company warns that energy demand could outstrip supply within a few years unless utility companies adapt their infrastructure to accommodate a projected 26% increase in generation capacity. Some datacenter operators are exploring alternative energy sources, including nuclear power, with companies like Oracle and Microsoft making moves to secure nuclear energy for their operations. However, the transition to cleaner energy sources may take time, with some analysts suggesting that small modular reactors may not be deployed until 2030. If cleaner alternatives are not developed, reliance on fossil fuels like coal and gas is likely to persist, contributing to a significant increase in global greenhouse gas emissions associated with the datacenter industry.

- AI datacenters are increasing demand for energy, prolonging the use of coal-fired power plants.

- Companies like Google and Meta are significant contributors to this rising energy demand.

- Utility companies may need to expand generation capacity by 26% to meet future energy needs.

- Some datacenter operators are considering nuclear power as an alternative energy source.

- Without cleaner energy solutions, reliance on fossil fuels is expected to continue, increasing greenhouse gas emissions.