AI Growth Strains Missouri's Energy Generation Capacity.

Published Date: 6/09/2024

The increasing use of artificial intelligence is driving up energy demand, putting pressure on Missouri's energy generation. Experts warn that the state's energy shortfall could worsen with the arrival of new AI data centers.

As the use of artificial intelligence (AI) continues to grow, so does the technology required to store its data — and the energy that infrastructure consumes. This has raised concerns among energy experts in Missouri, who warn that the state's energy generation may not be able to keep up with the increasing demand.

At a recent forum about securing Missouri's energy future, lawmakers, regulators, lobbyists, and advocates discussed the challenge of powering new data centers. A data center is a physical location that houses internet servers, and large tech companies are making plans to build them across the country. However, AI data centers use significantly more energy than current data facilities.

We're in a precarious position, said Geoff Marke, chief economist with the Missouri Office of Public Counsel. We don't have enough generation to meet our load before we start talking about AI data centers coming online. Marke and other energy experts expressed concern about resource adequacy — whether the state makes enough energy for its own use.

Historically, at a real macro level, we get most of our energy out of state, Marke said. Then we use more energy than we produce in state. The energy industry is experiencing seismic change, with coal plants retiring and renewable generation coming online. However, its reliance on the sun and wind tends to make it less consistent.

Additionally, increasingly severe weather has negative effects on the grid, which is especially detrimental to a state like Missouri that depends on interstate transmission lines to deliver power. The growing popularity of electric vehicles and increased economic development are also contributing to more energy demand.

As more solar and wind come online and as more coal goes offline, it's getting cleaner and it's getting healthier, but it's coming at the risk of reliability and being able to maintain enough power to meet demand, Marke said. At the same time, tech giants are shopping around for places to build AI data centers. Marke says they're likely looking for states with sufficient energy generation and tax incentives.

Unlike households or businesses that use power at certain times, the energy consumption of data centers is relatively constant. Their biggest cost driver is going to be energy, he said. Boston Consulting Group analysis shows that data center electricity consumption is expected to triple by 2030 — to 7.5% of total U.S. energy consumption, comparable to the power needs of 40 million households.

In March, Missouri Gov. Mike Parson announced that Google will build a new data center in the Kansas City area. Energy experts anticipate more are coming, and they're worried it will compound Missouri's energy shortfall. At the Jefferson City conference, one energy representative said the supply and demand issue surpassed cybersecurity as the industry's number one risk.

All of a sudden this historic amount of potential generation is coming online and we don't have, necessarily, the generation to meet it, Marke said. That's really just a game changer. What if AI data centers didn't have to use so much power? That's the question University of Missouri engineering professor Chanwoo Park is trying to answer.

Park received a $1.6 million dollar grant from the U.S. Department of Energy to research how to reduce the energy load of data centers. Roughly half of the energy consumption in a data center is actually used by the cooling system, Park said. According to MU, the U.S. Department of Energy allocated more than $40 million to research ways to cool data centers.

Park has been researching and developing cooling systems for digital technology since the early 2000s when he finished his Ph.D. and internet activity took off. He said we're now in an AI boom, and the air conditioning that cools current data centers won't be able to keep up.

The air cooling basically can handle so much heat, but this heat will be easily exceeded by AI computer(s), probably by 10 times more, he said. So automatically, this air cooling is not an option at all. Park is developing a technology that cools computer chips using two-phase heat transfer, using both vapor and liquid.

He anticipates the method could be in use in the coming decade. Meanwhile, others are keeping a close watch on how building new power plants to serve AI data centers will impact other electricity-consuming Missourians. John Coffman with the Consumers Council of Missouri worries about the longevity of AI and the data centers it requires.

It's the risk that they go out of business and then we're all definitely picking up the tab for the energy that was built or required for that customer, Coffman said. In the spring, the Missouri General Assembly considered — but did not pass — a number of policies concerning how the state should manage the forthcoming data centers.

Coffman expects the topic to return to the Capitol next year. I think it's important when you're looking at adding these types of projects to the system that you provide consumer protections to protect the rest of us from having to bail out a project, he said. Marke with the Missouri Office of Public Counsel said it's likely AI and its power-hungry data centers are here to stay.

FAQS:

Q: What is driving up energy demand in Missouri?

A: The increasing use of artificial intelligence is driving up energy demand in Missouri, as AI data centers require significant amounts of energy to operate.

Q: How much energy is expected to be consumed by data centers by 2030?

A: According to Boston Consulting Group analysis, data center electricity consumption is expected to triple by 2030, reaching 7.5% of total U.S. energy consumption.

Q: What is the main concern of energy experts in Missouri regarding AI data centers?

A: The main concern of energy experts in Missouri is that the state's energy generation may not be able to keep up with the increasing demand from AI data centers, leading to a potential energy shortfall.

Q: What is being done to reduce the energy load of data centers?

A: Researchers, such as University of Missouri engineering professor Chanwoo Park, are working to develop new technologies to reduce the energy load of data centers, such as more efficient cooling systems.

Q: What is the potential impact of AI data centers on other electricity-consuming Missourians?

A: There is a risk that if AI data centers go out of business, other electricity-consuming Missourians may be left to pick up the tab for the energy that was built or required for those data centers.

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