It takes one simple Google search to find a cool, shady swim spot in the heat of a Texas summer. Locals and newcomers alike have spent years under the sun looking for somewhere to cool off. While resting in the shade and cool waters, the setting sun sparks spiraling and well-seasoned Texan fears of rolling blackouts. Google searches begin again of likelihood of these fears coming true. But these Google searches may unknowingly add to their, and your, ability to cool off in our own homes.
If you have Googled anything since May, you may have seen the new Artificial Intelligence (AI) feature popping up at the top of your search. While you may not have intentionally used AI to find what you are looking for, it often makes long searches through articles much more efficient. That efficiency, however, uses 10 times as much energy as a regular Google search does. Could that efficiency cost us even more?
Alex De Vries, an energy consumption researcher, found in 2023 that Google’s new AI feature could begin to consume 85-134 terawatt-hours in the next 2-3 years. According the International Energy Agency, AI, cryptocurrency mining, and data centers consumed almost 2% of global energy demand in 2022 (about as much as all of Japan) and projections show that amount doubling in the next two years.
There is an AI and datacenter boom in Texas, and this growth is causing anxiety about the strain on an already out of balance grid. More than 1,000 people are moving to Texas each day for the economy and cost of living, but this boom in population has resulted in a rise in electricity demand, demand that could potentially reach 90,978 megawatts by 2032, a 6.4% increase from 2023.
This summer, the Business and Commerce Committee in the Texas Senate is studying the impact of cryptocurrency mining on the Texas grid. The cost could be huge, crypto mining makes up approximately 3,000 MW of energy demand per day in Texas. While crypto and AI consume high levels of energy, crypto is a flexible load, and is currently getting paid by regulators to reduce their consumption during periods of high demand. AI’s consumption, however, is continuous. Worse, the industry does not have the same flexibility.
According to the International Energy Agency, AI energy usage in the US could reach 1,000 terawatt-hours per year by 2026. The Texas Senate should study the strain that AI will put on grid residential electricity bills, not just crypto.
Cryptocurrencies and AI companies come to Texas motivated by the cheaper than national average utility bill and cheaper cost of living. Bank of America predicts that AI could contribute $15.7 billion to the global economy by 2030, and Texas can and should be at the epicenter for this economic boom. However, if Texas wants to continue welcoming AI and cryptocurrency, then we must have reliable power on the grid to sustain the demand.
These emerging technologies are coming to Texas while we are already grappling with an unbalanced grid; suffering from an overinvestment in renewable energy sources that are unable to support the demands of both energy-hungry industries and rising populations in a growing state. AI’s continued growth has the potential to boost the economy, but it could adversely affect the state if it results in higher power prices and increased unreliability.
Texas should continue to welcome these new industries, and the Legislature can do more to help. The Senate is correct to study the grid implication of crypto mining, but it should extend the study to include data centers and AI as well. They should continue to address the needed market reforms to improve grid reliability with dispatchable power, while preparing to welcome more nuclear energy to Texas, a technology crucial for our future power demand.
With the dreaded August heat, rising demand, and potential residential rolling blackouts, it becomes unfair for residents to experience heightened electricity bills and hours without necessary air conditioning. The Texas government should not remain complacent on this issue or we will be sweating about staying cool in the shadow the hot new technologies.