This Arizona energy expert isn't panicking about data centers
Paul Hirt, an energy expert, expresses optimism about the data center boom in Arizona, stating that innovation and a shift towards renewables can address concerns about resource consumption. He argues that fears about data centers universally driving up residential electricity rates are often misinformed, as utility rate decisions are complex and can be structured to charge commercial users differently. Hirt believes public attention will hold tech companies accountable, leading to more sustainable practices as seen in past industry developments.
Paul Hirt, a retired environmental historian from Arizona State University and former Salt River Project (SRP) board member, believes that data center expansion, even with the AI boom, can be managed without detriment to society or the environment. He highlights that data center construction has been ongoing for decades, and past concerns about energy demand led to technological innovations that made them a standard part of the electrical system.
Hirt challenges the notion that data centers are solely to blame for rising utility bills, explaining that rate decisions by regulatory commissions like Arizona's Corporation Commission take years to approve and involve complex processes. He notes that rate increases, if any, often occur regionally and can be targeted at commercial customers or data centers specifically, not necessarily residential users.
He suggests that data centers will increasingly rely on renewables like solar and battery storage due to their cost-effectiveness and rapid deployment. While acknowledging the current dominance of natural gas in powering U.S. data centers, he points out that many proposed self-powered projects aiming for natural gas may face long lead times, making renewables a more viable and faster alternative. Hirt adds that large tech companies, through their demand for 100% clean energy, have historically pushed utilities like SRP toward embracing renewable sources.
Despite public outrage and media portrayal of data centers as environmentally damaging, Hirt views the scrutiny positively, believing it will hold tech companies accountable to ensure sustainable development. He is confident that a pathway exists for AI-based data centers to develop without straining electrical systems, water supplies, or shifting costs to residential customers.