AI: Data Center Controversy
 | Author:
Victor Sample
Vic Sample: MT43 News Treasurer |
AI: Data Center Controversy
Victor Sample
Every single day as I read through my news feed, I see 10-15 articles about AI. Many of those articles are about the need for massive AI Data Centers to hold the required servers.
The data center would require construction bolstering jobs, at least temporarily, in the area of the data center. Construction materials would be purchased, bolstering the economy of the regions. And, of course, these data centers are large and contain a lot of expensive servers, all adding to the tax base of the county.
I have read there are at least 6 AI data center proposals for Montana. In addition to AI data centers, Bitcoin mining requires large data centers and companies like Google need large data centers for all of their data, including videos on YouTube. Amazon needs large data centers for their AWS (Amazon Web Services) processing that provides services for thousands of companies. MT43News is an AWS customer utilizing the data storage offered by AWS.
So why is there any controversy?
From Gizmodo (online posting): At least 25 data center projects around the country were canceled last year due to opposition from the local communities, according to research from intelligence platform Heatmap Pro.
On the Great Falls morning news, I have seen clips of AI Data Center opponents testifying at the Butte/Silver Bow County meeting against a proposed AI Data Center in Butte.
Data Centers (whether they are for AI, Bitcoin Mining, etc.) use a huge amount of water. The large servers generate massive heat and require massive amounts of water to cool the servers.
From the Guardian: Datacenters consume vast amounts of water and those facilities geared toward AI are especially intensive. One large-scale datacenter can consume as much as a million gallons of water per day.
From time-to-time there have been companies that have inquired about property in the TEDD (Targeted Economic Development District) at the south end of Broadwater County for building data centers. So far, none have gone beyond requesting information about infrastructure and pricing but imagine a data center there that was consuming a million gallons of water a day.
An even bigger issue is the huge amount of power required.
From the Guardian: Datacenters consume vast amounts of power; AI Datacenters are particularly power-intensive. One large-scale datacenter can use the same amount of electricity as a small city. The International Energy Agency estimates total electricity from data centers worldwide could double through 2026 from 2022 levels – roughly equaling what is used by the entire country of Japan per year.
If all six of the Data Centers proposed to Montana came to fruition, Northwest Energy could not supply those data centers without building new power generation plants – again, jobs and local economy boost, and property taxes. But, how does Northwest Energy pay for those new power plants – with rate increases approved by the Montana PSC?
Even after the plants are built, energy will be a scarce commodity. Scarce resources and high demand always lead to higher prices. Another trip to the PSC and another rate hike.
According to an article by Amanda Eggert of the Montana Free Press: In a petition before the Public Service Commission, a coalition of groups working on energy, climate and social justice issues argued that hundreds of thousands of Montanans will face higher bills unless the state’s utility regulator provides stricter oversight of NorthWestern Energy, the state’s largest utility. NorthWestern Energy has inked agreements with at least three data centers that will, if built, require every megawatt of energy the company can currently generate, and then some.
From Yahoo News: On Jan. 6, The Washington Post covered what it called "the data center rebellion", a series of localized efforts to stall or prevent the construction of new buildings.
As the newspaper noted, broad pushback — much of which is in deeply rural areas — is remarkably bipartisan. Residents of Silver Springs, Oklahoma, have been fighting to prevent the construction of a data center on farmland while local officials advocate for tech firms.
Skyrocketing electricity bills are among the reasons many Americans oppose the construction of data centers. The facilities strain local water supplies, a drain on public resources rivaled only by their immense energy consumption.
There is a recent article in the Montana Free Press by Amanda Eggert that explores 3 proposed Data Center projects in Montana – two of which are in Southwest Montana (near Butte). To read the article, visit the MT43News website at https://mt43news.com
Fortunately, in face of opposition to terrestrial-based data centers, there are a number of companies, including SpaceX, that are researching the viability of low-earth-orbit satellite Data Centers. THAT is an interesting idea: solar powered, no water consumption…
