AI Data Centers Spark Revival of Peaker Power Plants

The rising electricity demand from AI data centers has breathed new life into peaker power plants, saving them from retirement. These plants, located mainly in low-income areas, emit more pollution compared to regular power plants. With soaring electricity prices, the operation of these plants has become profitable once again.

The resurgence of peaker power plants, which had been slated for retirement, is driven by soaring electricity demands from AI data centers. These plants are often situated in low-income communities, raising concerns about increased pollution and environmental impact.

Despite their reputational and environmental drawbacks, peaker plants have seen a renaissance due to the sudden rise in electricity demand from data centers, making them economically viable once again. NRG Energy, among other owners, has halted the decommissioning of such plants, adding to the debate over their environmental costs.

Peaker power plants emit more pollution than regular stations as they are primarily fossil-fueled and lack strict pollution controls. The increasing demands for electricity have pushed prices higher and made the operation of these plants profitable, sparking a conversation about their long-term sustainability.

(With inputs from agencies.)