LETTER: Until AI bubble bursts, cost of electricity is likely to soar

To Ozaukee Press:

Data centers are metastasizing like a tumor across our country. Much has already been written about the major harms to groundwater supply, local air quality (most data centers use diesel backup generators) and local noise pollution. Two further points should be taken into account. The first is the “AI bubble,” and the second is local electricity rates.

Multiple luminaries highlight the AI bubble risk. Sam Altman of OpenAI, maker of Chat GPT and long considered the guru of AI, is quoted as stating, “Yes, investors are overexcited about AI.” Forbes magazine, soothsayer of the wider economy, reports that current AI predictions “inflated expectations are setting the stage for a sharp correction.” 

A Moody’s Analytics report details possible overbuild, technical obsolescence and disruptions from tariffs as risks to data centers.

The second factor to consider is the harm to local citizens due to increasing electricity rates. Goldman Sachs reports a likely 165% increase in data center power demand by 2030. This power has to come from somewhere, and while data centers often use diesel backup on site, baseline power comes from the local grid. Local grids are already outdated and under strain.

Nathan Dombeck

Janesville