How do we ensure that AI Data Centers bring energy innovation and benefits to the local community? That complex question was tackled by an expert panel at Trellis Impact 25, with the large audience showing widespread interest.
In just one year, US electricity needs will increase by 120GW, with over 90% for data centers. This is enough to power 75 million homes. Our current grid is not built for this capacity and building new power plants won’t reduce prices or increase resiliency. Bigtech companies want results fast and are abandoning their commitments to net zero and clean energy. Patrick Flynn of Switchboard even suggested that they would use whale blubber, if it got faster results. The panel later revised that to baby seals – a PR disaster!
So how can communities ensure a fair deal that benefits them and their local environment?
Efficient and Resilient Power
Firstly, it is critical that communities fully engage in the permitting process. The up-front bureaucracy of large construction projects is critical in the speed of development. If local champions can fully participate in this, they can negotiate ‘sweeteners’ that bring benefits to the local area. For example, if power needs are reduced in the community, there is more supply available for the data centers. Improved grid management and efficiency upgrades such as heat pumps bring reduced costs and greater resiliency.
McGee Young of WattCarbon announced a new initiative named Repowering California. Corporations invest in demand-side energy reductions using virtual power plants. The goal is to manage the power grid more efficiently whilst also reducing rates in the process. It also aims to encourage more investment in clean energy. Consumers can directly benefit by receiving payments through a Power Purchase Agreement.
People Power
Adrienne Pierce, CEO of New Sun Road, pointed out that people dislike large construction due to the disruption and pollution. That literally gives power to the people, as their protests can help to negotiate better and cleaner construction. Talking to her afterwards, we agreed that the talk was too focused on energy issues and needed to consider the more widespread community benefits. For example, employment of local contractors in the build stage, and provision of community centers or parks as project additions.
It is also clear that in these days of de-regulation, there is a deep mistrust of Bigtech. An audience member questioned the oversight and accountability of data center operations, and the panel all agreed that this is not keeping up with tech advancements.
The AI bubble is likely to burst at some point, and those data centers may become white elephants. Clean energy and grid resiliency must be integral to data center design, as this will ensure long-term community benefits regardless of the life of the data center. Thinking further ahead, why not make these centers disaster-proof? If the building stores power and water, and provides shelter from climate disasters, then it can become a very valuable asset for years to come.
