Artificial intelligence (AI) seems to be everywhere these days – from chatbots that answer your questions and assist with daily tasks to specialized tools that help doctors, programmers, scientists, accountants and other professionals better perform their jobs.

But behind the scenes, this computing power depends on massive facilities called data centers, which are seeing billions of dollars of investment. These buildings house thousands of servers that store and process information, and as AI grows, so does the demand for new data centers.

In this month’s blog, we look at three key things you should know about the rise of AI data centers:

1. AI data centers require a lot of energy.

Traditional data centers already consume significant amounts of electricity, but AI workloads are even more power-hungry. Training and running AI models require specialized computer chips that use significantly more energy than standard servers.

According to one estimate, an AI data center typically uses as much electricity as about 100,000 homes, so an increase in these data centers will have major societal impacts. Exactly how much electricity AI data centers will require is yet to be seen, but “power consumption by data centers is on course to account for almost half of the growth in electricity demand between now and 2030”.

For consumers, this doesn’t mean your lights will suddenly go out, but it does highlight why electricity planning is becoming more complex today. More demand from large facilities can put pressure on local grids, and, in some areas, this could ultimately contribute to higher electricity bills.

2. Communities could feel the local impact.

Data centers are often built near major population hubs or where land and electricity are relatively affordable. Northern Virginia, for example, has become the world’s largest concentration of data centers. The Dallas, Chicago and Phoenix areas are also emerging as key AI data center hubs.

While these facilities bring investment and tax revenue, they also raise questions for nearby communities, including electricity costs, which are already rising in many areas, and land and water use. For consumers, the key takeaway is that the growth of AI data centers isn’t just a tech story – it’s also a local planning and community issue.

3. New solutions are emerging to help manage the growth.

The good news is that electric utilities, policymakers and companies are experimenting with ways to meet this rising demand. One example comes from a Canary Media report about a company that is building a 31-megawatt battery system alongside its new facility. Instead of waiting years for traditional grid upgrades, the battery will allow the data center to come online faster while also helping the grid during times of peak demand.

This is important because it shows how energy storage can act as a bridge – supporting both the needs of high-tech facilities and the reliability of the broader grid. Other companies are exploring strategies such as using renewable energy contracts, recycled electric vehicle batteries and advanced cooling systems to reduce environmental and grid impacts.

What impact will AI data centers ultimately have on your community and your electric bills? It may be too early to say. However, the rise of AI data centers represents a major societal shift, and this conversation is certain to continue – if not amplify – in the years ahead. For consumers, staying informed is the first step, because the choices made today about powering AI will shape the energy landscape for years to come.