US Data Center Boom Drives Fossil Fuel Power Surge, Raises $5.7B-$9.2B Annual Health Costs

The rapid expansion of data centers to support generative AI is dramatically increasing electricity demand, forcing utilities to rely heavily on fossil fuels and undermining renewable energy goals, with significant public health costs estimated between $5.7 billion and $9.2 billion annually. OpenAI CEO Sam Altman and other industry leaders emphasize that AI's growth is fundamentally constrained by energy availability, noting that computing power and electricity costs will be key limits to AI's future development. Data centers already consume a substantial portion of global electricity, projected to double by 2030, with tech giants investing in clean energy projects but still heavily dependent on fossil fuels due to reliability and cost concerns. The U.S. and China are engaged in a critical competition for AI supremacy, where reliable, affordable energy infrastructure is a strategic advantage; China is expanding coal-powered capacity aggressively, while the U.S. lacks a consistent energy policy to support AI infrastructure growth. Altman testified before Congress highlighting the immutable physical limits of electricity consumption in AI and the need for innovation in energy to sustain AI advancements. Overall, the AI revolution is as much an energy revolution, requiring careful planning and investment in power generation to balance technological progress with environmental and public health considerations.