Dyani Chapman
State Director, Alaska Environment Research & Policy Center
907-206-7941
[email protected]
RELEASE: New report details environmental, consumer costs of data center expansion
Media Contacts
ANCHORAGE, Alaska –Rising electricity demand from U.S. data centers risks deepening America’s reliance on fossil fuels and can put consumers and communities at risk, according to a report released Thursday. The report, Big data centers, big problems: The surging environmental and consumer costs of AI, crypto and big data, by Frontier Group, Alaska Environment Research & Policy Center, and our national partners reflects growing concern about the environmental and other impacts of powering technologies such as artificial intelligence (AI) and cryptocurrency.
“New technology can be part of a brighter future, but not if it keeps us tied to the dirty energy sources of the past,” said Quentin Good, policy analyst with Frontier Group and one of the report’s authors. “The impact on consumers and the environment from data center expansion isn’t theoretical; it’s real and it’s happening right now.”
The report shows that between 2021-2024, the number of data centers in the U.S. roughly doubled from 2,667 to 5,381, and that number is expected to keep growing. Electricity demand to power these centers is projected to increase as well.
Alaska currently has two data centers– GCI’s Anchorage facility and Far North Digital LLC in Prudhoe Bay. Additionally, Hilcorp is launching a pilot project with a Texas based company to operate a data center on the Endicott oil field using methane gas. Exxon Mobile also has plans to sell methane gas from oil fields in Alaska to cryptocurrency mining operations. Governor Dunleavy is enthusiastic about adding more data centers and has been actively courting technology companies.
“It’s true that Alaska has some locations relatively well suited to data centers, but we must avoid repeating the mistakes made in other states,” said Dyani Chapman, Alaska Environment Research & Policy Center State Director. “If more data centers open in Alaska, we should require them to be efficient, transparent, and prudent with human and wildlife health. They should run entirely on renewable energy. That renewable energy should be generated in addition to, not instead of, what we need to power our homes and communities.”
The report identifies at least 17 fossil fuel-generating facilities nationwide that have delayed their anticipated closures or are at risk of being kept open longer than planned due to rising electricity demand. In many cases, much of that demand is for data centers. Additionally, at least 10,808 MW of new fossil-fuel powered electricity generation is being planned to meet increasing electricity demand nationwide. In Alaska, data centers could create sufficient demand for the multi-billion dollar gas pipeline from the North Slope.
Data centers can increase utility prices for consumers, and the cost of incorporating data centers onto the electric grid can be passed onto other ratepayers.
“Ratepayers and Alaska’s Permanent Fund should not have to subsidize facilities that create major costs and strain our electric infrastructure,” said Abe Scarr, energy and utilities program director for U.S. PIRG Education Fund.
Experts will discuss the report’s findings further and be available to answer questions at a live webinar on Thursday, Jan 23, 10-11am AK.
SPEAKERS:
- Quentin Good, Policy Analyst, Frontier Group
- Jeff St. John, Director of News and Special Projects, Canary Media
- Cyndie Roberson, registered nurse and co-founder of Cherokee County NC Citizens Against Crypto Mining, founder of Gilmer County GA Citizens Against Crypto Mining and the Georgia Coalition Against Cryptomining. Member of the National Coalition Against Cryptomining NCAC) and the Creation Care Alliance.
- Diana Dietz, veteran public health nurse in Atlanta, GA.
WHEN: Thursday, January 23, 2025, at 10:00am AK
WHERE: via Zoom. Here is the link to RSVP.