Midwest Data Centers: Merging Growth with Clean Energy Initiatives

The rapid evolution of artificial intelligence and digital technologies is driving significant changes across the American economy, notably marked by the expansion of data centers. In the Midwest, companies are in a race to build these crucial infrastructures, which are vital for supporting both current and future technologies. However, this growth must be aligned with the development of clean energy sources and robust grid infrastructure to benefit rather than burden the regions involved.

Clean Grid Alliance points out that while the swift growth of data centers in the Midwest presents major economic opportunities, it also necessitates responsible development. New facilities should integrate clean energy solutions, safeguard consumers from unfair cost hikes, foster transparent community engagement, and mitigate environmental impacts, all while incorporating essential grid infrastructure to maintain reliable service.

Projections from the Electric Power Research Institute suggest that data centers could account for 9% to 17% of U.S. electricity consumption by 2030, up from the current 4% to 5%. The U.S. Energy Information Administration anticipates the most substantial four-year increase in electricity demand since 2000, largely driven by data centers. A mismatch between this demand and the availability of resources and infrastructure could lead to higher costs and reliability issues for consumers.

Data centers should contribute to the grid by adding clean energy sources, rather than merely competing for existing power supplies that homes and businesses rely on. By integrating wind, solar, and battery-storage projects, these facilities can help expand the regional energy supply. Many developers have expressed a commitment to using clean energy, and Clean Grid Alliance is working to ensure regulations and grid operations support these initiatives.

Wind, solar, and battery storage are cost-effective and scalable resources that can be rapidly deployed to support energy demands. These resources can also be distributed on a larger scale through the regional transmission grid, providing affordable energy to data centers throughout the Midwest. This reduces the dependency on costly backup energy sources like natural gas and diesel generators.

Coordinated planning is crucial and should extend beyond the boundaries of individual data-center sites. Stakeholders including utilities, regulators, and community leaders must collaborate to accommodate growth responsibly. Clean energy should be the primary solution for powering data centers, with necessary transmission and grid enhancements to ensure efficient and reliable electricity delivery.

Consumer protection is also a key concern. The addition of large electricity consumers often requires investment in generation and grid infrastructure. These costs should be distributed fairly, ensuring that families and small businesses do not bear the financial burden of supporting private company growth. Clean energy resources, whether dedicated to specific data centers or integrated into the broader grid, help minimize energy costs and manage the expenses associated with backup power.

Communities affected by data-center developments deserve a say in the process. It’s essential for local residents and leaders to receive timely and accurate information about proposed projects, including details on energy demands, land use, and potential impacts. Clean-energy solutions can offer reliable and cost-effective benefits, supporting economic growth in diverse industries and communities.

Clean Grid Alliance continues to advocate for these principles at both state and regional levels. In Minnesota, the organization champions utility programs that pair data-center growth with new clean energy, protecting existing customers from additional costs. The Alliance is also involved in long-term utility planning in states like Illinois, Michigan, Minnesota, and Missouri, ensuring the role of renewable resources is fully considered in meeting data-center demands. At the regional level, they support well-planned transmission development and competitive policies that favor clean-energy resources, avoiding biases towards fossil-fuel generation.

Beth Soholt is the executive director of Clean Grid Alliance, a Minneapolis-based coalition of over 80 partners advocating for wind, solar, storage, and transmission projects.