"The computing-power demands of artificial intelligence is a big reason why."
Why this is important: In today’s evolving digital age, the construction of data centers has rapidly increased due to the need for large volumes of data storage and the development of artificial intelligence technology (AI). In fact, it is predicted that the total amount of operational data centers will have increased by 57 percent over the course of the next three years. While the construction of data centers undoubtedly fosters economic growth, as it creates jobs in both the construction and technology industries and efficiently processes the transmission of digital information, these construction projects also present significant environmental and legal challenges to be aware of.
At any given moment, data centers are processing all of the information that is transmitted between digital networks and devices. As such, the centers require enormous amounts of energy to function properly, specifically the use of electricity to power each server and cooling system within the centers. According to the Environmental Protection Agency (EPA), 60 percent of electricity is produced from burning fossil fuels, such as coal and natural gas, but these fossil fuels also contribute to the largest source of greenhouse gas emissions in the United States. To combat this negative environmental impact, data centers are starting to rely upon renewable energy resources, such as solar and wind energy, and should continue to do so as data center construction projects continue to expand throughout the country.
In addition to these environmental considerations, the construction of data centers is also putting pressure on utility companies to quickly respond to the significant growth in electricity needs. For example, in 2023, the Georgia Power Company (GPC) filed an Integrated Resource Plan Update (Resource Plan) with the Georgia Public Service Commission (Commission) in which it proposed, among other things, the construction of three combustion turbines that would rely upon fossil fuels to generate energy (See In Re: Georgia Power Company’s 2023 Integrated Resource Update Plan). The Commission ultimately approved GPC’s Resource Plan because of the increasing energy demand, but this sparked criticism in the community for its negative environmental impact. As a result, parties have filed, and are continuing to file, pleadings with the Commission that respond to these environmental concerns with clean energy solutions.
Ultimately, the increased construction of data centers will ignite economic prosperity within the construction and technology industries. However, such prosperity will also be met with other environmental and legal challenges. As more data centers are constructed, utility companies will be forced to construct more energy generation facilities, which rely upon various fossil fuels that negatively impact the environment. Consequently, sustainable companies may continue to flood the docket of Public Service Commissions with pleadings that advocate for clean energy solutions. It is important to keep these opposing goals in mind as construction and technology professionals choose how to structure and where to locate their business ventures. --- Emily R. Merritt
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