California is experiencing a power struggle as the construction of data centers, fueled by the demand for artificial intelligence (AI), surges across the state. These massive facilities, which require significant amounts of electricity and water, are not only raising concerns about the sustainability of power resources but also increasing the risk of blackouts.

The Salton Sea region plans to build a data center that spans the size of 15 football fields and demands power equivalent to supporting 425,000 homes. Meanwhile, in Santa Clara, the heart of Silicon Valley, the municipal utility is grappling with rising electric rates due to the voracious power demand from over 50 existing data centers. In fact, these data centers currently consume a staggering 60% of the city's electricity.

The situation is further compounded by the fact that Pacific Gas & Electric recently revealed that their customers have submitted proposals for more than two dozen additional data centers, demanding a substantial 3.5 gigawatts of power – the equivalent output of three new nuclear reactors.

While the benefits and risks of AI continue to be debated, one indisputable fact is that the technology requires a rapacious amount of power. Sustainable energy experts warn that the frenzy of data center construction could hinder California's transition away from fossil fuels and burden everyone else with higher electric bills. The data centers' insatiable appetite for electricity also raises the risk of blackouts, exposing the state's vulnerability.

In a recent analysis by GridClue, a nonprofit organization focused on power use threats, California ranked 49th out of 50 states in resilience. This means that the state has a limited ability to avoid blackouts, as the electricity supply falls short of the demand during peak usage hours.

Thomas Popik, the President of the Foundation for Resilient Societies, warns that California is steadily putting itself in a precarious position. As a result, the state has resorted to extending the lifespan of aging power plants, including Pacific Gas & Electric Co.'s Diablo Canyon nuclear plant and certain gas-fueled plants, in an attempt to secure power during sweltering days.

Concerned by this escalating demand, the California Community Choice Association sent a letter to state officials urging an immediate analysis of the increasing demand for power. This urgent request followed the upward revision of the annual forecast of power demand due to the skyrocketing usage by Santa Clara's numerous data centers.

These vast warehouses of servers, which power various online activities, are becoming even more energy-intensive with the introduction of specialized chips specifically designed for generative AI purposes. According to the International Energy Agency, a ChatGPT-powered search consumes ten times the power of a regular AI-free search on Google. Additionally, the excessive heat generated by these new chips requires even more power and water to maintain suitable cooling conditions.

Shaolei Ren, an associate professor of electrical and computer engineering at UC Riverside, expressed surprise at the state's apparent lack of tracking this critical energy and water usage issue, given the environmental concerns in California.

Ren and his colleagues further forecasted that the global use of AI could consume as much fresh water in 2027 as four to six countries the size of Denmark currently use. This alarming projection underscores the urgent need for more sustainable practices in the rapidly expanding field of AI.

Driving the proliferation of data centers is profitability. Companies that invest in AI earn significant rewards in the stock market, while electric utilities profit from increased power usage. Local governments also benefit from data centers through property taxes.

Silicon Valley, the global epicenter of AI, hosts major companies such as Alphabet, Apple, and Meta. OpenAI, the creator of ChatGPT, operates out of San Francisco, while Nvidia, a prominent AI chip manufacturer, is based in Santa Clara. These tech giants, along with Microsoft and Amazon, are pouring billions into building new data centers worldwide and renting space from other companies.

The consequences of this data center boom are far-reaching. Analysts at Goldman Sachs predict that data centers could potentially account for up to 11% of U.S. power demand by 2030, a significant increase from the current 3%.

Charles Giancarlo, CEO of the Santa Clara IT firm Pure Storage, emphasizes the urgent need for more efficient data centers. Failure to address this issue could strain energy resources, hinder new home construction, increase carbon emissions, and raise electricity costs for Californian residents.

Currently, California houses over 270 data centers, with Santa Clara hosting the largest concentration. The city's attractive electric rates, 40% lower than those charged by Pacific Gas & Electric, have contributed to its appeal as a data center hub. However, these discounted rates come at a higher environmental cost. Silicon Valley Power, the city's utility, emits more greenhouse gases than the average California electric utility due to 23% of its commercial power coming from gas-fired plants and another 35% purchased from an unidentifiable origin on the open market.

Critics have questioned the fairness of the lower rates enjoyed by data centers, given the environmental impact and the burden placed on local residents. As data centers grow, the city receives millions of dollars in property taxes, and 5% of Silicon Valley Power's revenue contributes to Santa Clara's general fund.

With California teetering on the edge of a power shortage, immediate action is needed to ensure the sustainable growth of data centers and balance the state's energy demands. The transition to greener, more efficient data centers is crucial for California to maintain its position as a tech hub while protecting its energy resources and environment for future generations.