PISCATAWAY, New Jersey (WABC) — The surge in artificial intelligence is sparking concerns in New Jersey over how it could impact the cost of electricity for residents.
Every time you use your favorite app, server, or AI platform, that information goes through a data center.
The AI data centers are sprawling facilities. New Jersey will have 82. Currently, more than 70 are online.
Residents are surprised by the growth of these companies.
The concern is energy usage. The data centers run 24 hours a day, seven days a week, and some are massive, but will there be enough electricity to go around and do these facilities drive up energy costs for everyone?
Business leaders say the state needs to gear up for more demand.
“We’ve been closing down nuclear power plants, and now lo and behold, we’re seeing a new demand for energy, and we just don’t have the energy to supply it,” said Ray Cantor of the New Jersey Business and Industry Association.
The QTS facility in Piscataway stretches over 360,000 square feet. It is the largest AI data center in the state of New Jersey, and uses enough energy to power some 44,000 households.
“That’s almost like the whole town. You said 44,000. Piscataway is like over 50,” said Piscataway resident Diane Snyder.
The state’s largest data center is slated for Cumberland County in Vineland. It is going to use five times more energy than the Piscataway data center. Lawmakers want to ensure that residential rates don’t jump because the data centers use the electric supply.
“Let’s be transparent in how much energy we are going to need to build these data centers,” said New Jersey Assemblyman David Bailey.
A Rutgers University study is underway to determine the impact on electric rates for residents living near data centers.
“We’re recruiting people from places which are close to data centers being set up and people who are far away from data centers being set up and then we look at the electricity prices,” said Rutgers assistant professor Kiran Garimella.
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