Archive · 24 Dec 2025
AI Data Centres Revive Old Power Plants
Big tech companies are using a lot of electricity for their AI data centres.
This has caused a shortage of power in some areas, so old power plants that were supposed to close are being kept open.
These old plants, called peaker plants, run on oil, gas, or coal and produce more pollution.
They are often located in poor neighbourhoods with many people of colour.
Some people think this is bad for the environment and the health of people living nearby.
Others say these plants are necessary to keep the lights on and prevent blackouts.
There are alternatives like better power lines and batteries, but for now, the old plants are staying open to meet the high demand for electricity.
AI data centres are causing a surge in electricity demand, leading to power shortages.
Older, fossil-fuelled peaker plants are being revived to meet this demand.
About 60% of oil, gas, and coal plants slated for retirement have postponed shutdowns.
Peaker plants emit more pollution and are often located in low-income communities of colour.
Alternatives like robust transmission lines and batteries could reduce reliance on peakers.
- Who
- AI data centres and power companies like NRG Energy
- What
- Reviving old peaker power plants to meet increased electricity demand
- When
- Recent years, with a significant increase in 2023
- Where
- Across the US, particularly in PJM Interconnection territory
- Why
- To prevent blackouts and meet the growing electricity needs of AI data centres
- Fisk Power Plant
- Oil-fired peaker plant in Chicago's Pilsen neighbourhood
- PJM Interconnection
- Country's biggest power market experiencing electricity shortages
- Peaker Plants
- Older, fossil-fuelled facilities used for short bursts during high demand
- Retired Plants
- 60% of oil, gas, and coal plants slated for retirement postponed shutdowns
- Emissions
- Peaker plants emit more pollution and cost more than continuous power plants
- Location Disparity
- Peaker plants disproportionately located in low-income communities of colour
- AI Demand
- AI data centres driving up electricity demand and prices
- Alternatives
- Robust transmission lines and batteries could replace peakers
