Increased AI Demand Revives Peaker Power Plants Across the U.S.
Rising electricity demands from artificial intelligence data centers have led to the postponement of retirement plans for many peaker power plants across the U.S., including Chicago's Fisk power plant. The PJM Interconnection reported a surge in power prices, prompting approximately 60% of oil, gas, and coal plants slated for retirement to remain operational, raising concerns about increased pollution and environmental justice in low-income communities. The economic viability of these plants has improved significantly, with electricity prices rising over 800% compared to last year.
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The Fisk power plant in Chicago, owned by NRG Energy, was set to retire next year but will remain operational due to rising electricity demands from artificial intelligence data centers. The PJM Interconnection reported a spike in power prices as requests from data centers exceeded supply, prompting about 60% of oil, gas, and coal plants slated for retirement in the PJM region to postpone or cancel those plans, mostly affecting peaker units.
These peaker plants, designed for short-term operation during demand spikes, are now being utilized more frequently, leading to increased pollution emissions. The U.S. Energy Secretary highlighted the potential for these plants to operate more, raising concerns about environmental justice as many are situated in low-income communities of color. The economic viability of these plants has surged with electricity prices rising over 800% compared to last year, indicating a tension between meeting energy demands and local environmental impacts.
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