Did you know the demand for electricity increased by 2.5% in 2024 and is expected to grow by 3.2% this year? That was after co-ops saw a 4.8% increase in 2022. Through 2029, the nation’s peak demand is projected to grow by 38 gigawatts. That would be like adding another California-sized state to our nation’s power grid.
The rapid growth of artificial intelligence (AI) is driving the development of massive data center facilities, which often seek rural electric co-op service territories. By 2022, these facilities accounted for 2.5% of the nation’s consumption of electricity––and by 2030, they’ll use 7.5% of all electric power.
Data centers and facilities like warehouses require a large, steady supply of electricity 24 hours a day. That means our power supplier, Central Iowa Power Cooperative, can’t rely on intermittent sources of electricity such as solar or wind energy to handle the additional load. Instead, they need more of what’s known as baseload or always-available power, much of which is currently generated by burning fossil fuels. The more we depend on technology, the more we’ll need reliable baseload generation.
Yet that’s a problem, because at the same time Americans are using more electricity, power providers are being forced to shut down reliable sources of baseload power such as coal and nuclear power plants. Many large coal plants have been converted to use cleaner-burning natural gas, but others have been deemed too costly to convert and are prematurely being shut down. More than 110 gigawatts of always-available generation—enough to power about 35 million homes—is forecast to retire by 2033.
In other words, at the same time everyone is using more electricity than ever, the supply of the most reliable source is drying up. As renewables become more efficient and cheaper to produce, their share of the power mix will only continue to grow. Someday soon, battery technology may reach the point where large-scale storage of renewable generation becomes possible, but until then, we’ll need more of those always-available power sources.