The explosion of artificial intelligence, cryptocurrency mining, and other computing-intensive processes have fueled a building boom for data centers. But they’ve also fueled a massive spike in energy demand, which is in turn leading to higher energy prices for many facilities across the country. One study estimates data centers could be responsible for a 70 percent increase in the cost of electricity over the next 10 years. One hyperscale data center, as a point of reference, can use as much electricity as 40,000 homes.
The reason why electricity is becoming more expensive is self-evident. In Illinois, for example, rates are expected to climb because utilities like ComEd must invest now to ensure there is enough electricity to cover demand. As more data centers are coming online, that demand is inching up, and the cost to increase production is being passed on to facilities and residential customers. Next year, residential customers are expected to see an increase of $10 per month, according to the Chicago Sun-Times.
The five largest data center markets – northern Virginia, Dallas/Fort Worth, Chicago, Phoenix, and Silicon Valley – are expected, naturally, to be most impacted by rising energy costs.
For facility managers, this trend highlights again the importance of energy efficiency at their facilities. As the cost of energy rises, so too does the return on investment of energy efficiency measures.
Greg Zimmerman is senior contributing editor for FacilitiesNet.com and Building Operating Management magazine.
