Massive data centers needed for generative artificial intelligence systems like ChatGPT require enormous amounts of electricity, putting new strain on power grids. While that’s driving up the cost of electricity in some parts of the country, regulators say Maine has yet to feel that pressure.

Data centers — facilities that house computers to store data and run online applications and services — consumed more than 4% of the country’s total electricity in 2023, and that figure could be as high as 12% by 2028, according to the Department of Energy. That electricity powers everything from relatively simple email servers to the complex systems behind generative AI.

With the recent growth of generative AI, the demand for large-scale data centers has skyrocketed.

By the end of 2024, more than 1,200 data centers were already built or approved for construction nationwide, according to an analysis by Business Insider. Meanwhile, the industry-oriented Data Center Map, which takes voluntary submissions, lists nearly 4,000 — including seven in Maine — though it cautions that number could reflect multiple businesses sharing some sites.

Residents on standard utility plans in Ohio saw their bills jump by about $20 a month this summer, largely driven by nearby data centers, the Washington Post reported. Similar hikes have been reported in other states, though some analyses rely on metrics that do not directly correlate with residential rates, making the impacts difficult to quantify.

While AI-minded data center developers have expressed interest in Maine, those plans have fizzled out. After announcing plans in 2021, a California company quietly backed out of building a $300 million data center at a shuttered paper mill in Millinocket after determining it could not produce enough power there or attract the AI customer it wanted, the Bangor Daily News reported.

New England has not experienced the rapid growth in data centers seen elsewhere, said Mary Cate Colapietro, spokesperson for ISO New England, which oversees the region’s transmission power grid. So far, no large data centers have gone through the organization’s interconnection process to join the larger grid, she said.

“However, the ISO is closely monitoring this trend and would evaluate proposed projects on a case-by-case basis,” Colapietro said in an email, noting that there are several factors, like on-site generation, that can influence a given data center’s impact on the surrounding grid.

It’s true that retail electricity prices are up this year, but state officials largely point to high storm recovery costs as the main culprit.

OTHER DRIVERS

Heather Sanborn, who represents ratepayers as Maine’s public advocate, said statewide electricity prices are not currently facing pressure from AI or other large data centers.

“The major price drivers in Maine are very different than that,” Sanborn said on a Thursday phone call. “The other conversation that’s happening throughout the rest of the country is really more relevant to us, which is about recovery from natural disasters.”

Philip L. Bartlett II, chair of the Public Utilities Commission, echoed claims that Maine’s electrical grid, and its ratepayers, have yet to feel the AI crunch. But he has been hearing more and more about how to plan.

“We’re not at that point where it’s critical,” he said. “But I will say the conversations are happening.”

Bartlett pointed to Maine’s — and New England’s — high cost of electricity as a possible deterrent to setting up shop here compared to other states, especially those that have actively courted the new infrastructure. He added that while swaths of undeveloped land could make rural Maine seem attractive, siting a data center requires more than just open space, and he suggested that underdeveloped internet infrastructure could make building data centers in rural Maine difficult.

“My guess is it’s going to come to New England, but we’re not the top tier, the tip of the spear for this one, which is good. It gives us some time,” he said.

EYE ON ELSEWHERE

Bartlett said he and fellow regulators are watching other states and keeping an eye out for effective ways to mitigate the potential impact to household ratepayers. He said requiring on-site generation or designing special pricing structures for data centers could help ensure their costs are not passed onto residential customers.

“I think that every state that has significant data centers coming into it is sort of in their pilot phase right now, and trying to figure out how to deal with large loads,” Sanborn, the public advocate, said. When they come to Maine, “I think we’ll have the benefit of some lessons learned.”

In the meantime, the Governor’s Energy Office is coordinating with other states to develop a forward-looking plan, said Director Dan Burgess.

“Maine is taking a thoughtful, proactive approach to safeguard ratepayers, ensure grid stability and prioritize affordability,” he said in a written statement.

Hepeng Li, an assistant professor at the University of Maine’s College of Engineering and Computing, believes Maine’s geography could one day attract data centers. The state’s cool climate, especially compared to places like Texas and New Mexico, could reduce the amount of energy needed to cool the massive computers.

“As far as I know, the cooling part accounts for 40% or even half of the energy consumption of a center,” Li said.

Li said new data centers could benefit Maine’s economy at the state and local level, but only if the electrical and internet infrastructure exists to support them. Li expects to see increased interest in Maine “very soon.”

“I think we should worry now, actually,” Li said. “The building of a data center — the speed is much faster than we build the grid.”