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Home News

AI Boosts Chicago Datacenter Power Needs

April 22, 2024
Reading Time: 3 mins read
in News
AI Boosts Chicago Datacenter Power Needs

Exelon, a leading US energy provider, has observed a significant rise in power demand driven by datacenter growth in the Chicago area, which is expected to increase ninefold due to the rapid adoption of AI technologies. According to Exelon CEO Calvin Butler, who spoke at the S&P Global Power Markets Conference in Las Vegas, there are approximately 25 datacenter projects planned in the region. These projects are anticipated to consume an estimated 5 GW of power. Butler noted that about 80% of these projects are likely to be completed, dramatically increasing the power consumption from the current 400 MW to about 4 GW.

The growing demand for AI applications is fueling datacenter expansions globally, with Chicago poised to become one of the top global locations for datacenters. This trend is reflected in the efforts by the state of Illinois and economic development organization Intersect Illinois to market Chicago as a prime location for datacenters. Currently, Chicago ties with Dallas as the third-largest datacenter hotspot in the US, boasting about 4.8 million square feet of operational data hall space and another 2.2 million square feet in development.

However, the massive increase in power demand from these datacenters will initially not lead to a proportional increase in power generation. Exelon plans to meet the new demand using the regional grid’s existing excess capacity and by importing electricity from other areas. Only if necessary will the company consider building out new electricity generation sources. This approach highlights the challenges faced by energy providers in balancing the growing needs of digital infrastructure with sustainable energy practices.

The surge in datacenter power consumption underscores a broader global concern about the impact of AI-driven expansions on electricity grids. Countries like Ireland, Germany, and Singapore have already imposed restrictions on new datacenter builds to manage the strain on their electrical infrastructure. Similarly, the head of the UK’s National Grid has warned that datacenter power consumption in Britain is expected to grow by 500 percent over the next decade, illustrating the significant energy challenges posed by the digital age.

Reference:
  • AI Surge Drives Ninefold Datacenter Power Demand in Chicago
Tags: AIApril 2024ChicagoCyber NewsCyber News 2024Cyber threatsCybersecurityDatacenterExelonLas VegasUS
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