AI data centers are reviving U.S. ‘peaker’ power plants
Artificial intelligence data centers are driving a surge in U.S. electricity demand, forcing long-retired “peaker” power plants back into operation. These plants, designed for short-term power spikes, are now running more frequently to support Big Tech’s energy-intensive operations.
In Chicago’s Pilsen neighborhood, the Fisk oil-fired power plant—scheduled for retirement—has remained active due to AI-driven demand. Prices on the PJM Interconnection grid, which covers 13 states, spiked over 800% this summer as data centers strained the system, News.Az reports, citing Reuters.
Peaker plants like Fisk can respond quickly to electricity shortages but emit more pollution than standard power plants. Many are located in low-income, predominantly minority communities, raising environmental justice concerns. They often lack modern pollution controls, meaning local residents face higher exposure to harmful emissions such as sulfur dioxide.
NRG Energy, owner of the Fisk plant, says peakers are critical for grid stability, particularly during severe weather and high-demand periods. Alternatives such as batteries and upgraded transmission lines could reduce reliance on peakers, but for now, AI data centers are keeping them active.
As AI-driven electricity demand continues to rise, communities near peaker plants may experience increased pollution and higher energy costs, highlighting the trade-off between cutting-edge technology and environmental impact.
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