AI Data Demand Revives Peaker Plants Amid Pollution Concerns

The increasing electricity demand from AI data centers is resuscitating rarely-used peaker plants, known for high pollution, due to sudden economic viability. These plants, often in low-income minority areas, strain the nation's power grid and increase local emissions despite efforts for clean energy solutions.

CHICAGO - In Chicago's Pilsen neighborhood, the 60s-era Fisk power plant, scheduled for retirement, remains in operation as AI data centers spike electricity demand, making it profitable again. Owned by NRG Energy, the plant is part of a trend where peaker plants are increasingly used to avert blackout situations.

While peakers provide an essential service during times of high power demand, they also emit more pollution than other types of power plants. Despite shut-down efforts, many peakers avoid closure due to their economic benefits amidst soaring electricity prices driven by AI-related energy consumption.

Often situated in low-income and minority communities, peaker plants exacerbate local pollution. As entities like PJM Interconnection work to balance electricity supply and demand, reliance on fossil-fueled peakers prevails, posing concerns for environmental and public health advocates.