As AI technology advances at breakneck speed, the demand for computational power surges along with it. From training complex machine learning models to running large-scale data centers, AI companies are constantly searching for reliable energy sources. One unexpected solution? Resurrecting defunct energy plants.
Why Defunct Energy plants?
Old energy plants—often coal or natural gas facilities—were once the backbone of industrial power grids, but many were shut down due to environmental concerns, inefficiency, or a shift toward renewable energy. Now, these closed plants are getting a second chance, largely because of AI’s insatiable need for energy.
Repurposing defunct energy plants offers a few major benefits:
- Location: These plants are often located near industrial hubs, where existing infrastructure (like power lines and transportation routes) remains intact. This means less work is needed to re-integrate them into the grid.
- Availability: With energy demand spiking, especially for data centers, having immediate access to high-capacity energy sources is crucial. Reviving an old plant can be faster than building a new one from scratch.
- Cost-Effectiveness: Retrofitting an existing plant can often be cheaper than starting from square one. The groundwork is already laid, and companies can focus on modernizing instead of complete construction.
AI and Power Consumption
Artificial intelligence needs power—lots of it. Machine learning models, particularly those that require vast amounts of data, need high-powered servers to run. This demand is only growing, with some estimates suggesting that AI data centers could consume up to 9% of the United States electricity generation by 2030.
Tech companies are turning to defunct power plants to bridge the gap between energy supply and demand. With power needs increasing exponentially, old energy plants are attractive for their capacity and potential for rapid deployment.
AI Companies Reviving Defunct Plants
In recent news, some tech giants have announced plans to bring old energy plants back online to power their AI projects. This includes coal and natural gas plants that were previously shuttered due to regulations or economic downturns. To meet the energy needs of artificial intelligence ~Microsoft inked a major power purchase deal with the owners of Three Mile Island in Pennsylvania. A nuclear power reactor there underwent a partial meltdown in 1979. Its unaffected twin reactor operated until 2019 and would provide a carbon-free source of power. By retrofitting them with newer, more efficient technology—or even converting them to run on alternative fuels—AI companies are finding ways to power their next-gen innovations while also taking advantage of pre-existing infrastructure.
AcreValue's role in this process comes into play with land development. For any energy project, understanding land value, zoning laws, and nearby resources is essential. AcreValue provides detailed, parcel-level data that helps companies scout for ideal locations, evaluate property lines, and assess infrastructure capabilities. You can even search for parcels within a set distance from closed down plants! This is especially useful when determining the viability of defunct power plants for future use.
As the AI industry continues to grow, so does its need for energy. Resurrecting defunct energy plants offers a practical, cost-effective solution to meet this demand.