The latest fashionable debate on the left over large language models, or artificial intelligence as it’s commonly known, is not about user safety, privacy or experience, although those are still important. Rather, the latest flashpoint — and this will soon become one on the right as well — is over the construction of new data centers for AI. You see, all of the popular AI models like Claude, ChatGPT and Grok depend on vast data centers to process all of their inputs.
Those data centers require a vast amount of electricity to run and operate: a common smaller data center needs around 438 gigawatt hours per year, while a larger one needs 876 gigawatt hours a year. If that means nothing to you, you’re not alone, so let’s put it in perspective: the smaller data center uses about two-thirds as much electricity as Portland, Maine, in a year, while the larger example uses about 30% more.
So, it’s perfectly understandable why politicians in Augusta, and in Washington, D.C. — like Bernie Sanders and Alexandria Ocasio-Cortez — are concerned about building new data centers: they can absolutely increase the price of electricity for everyone.
The key word here, however, is can: they don’t necessarily do that. That’s why their proposal for a blanket ban on data centers goes too far, and why Maine shouldn’t enact the moratorium currently being considered by the Legislature.
Yes, if you just plop a data center down anywhere without any consideration of electricity, it will probably drive up costs for everyone (although not necessarily even then). There are a number of ways to abate the costs, however, and that’s why a blanket ban or moratorium, at the state or federal level, isn’t warranted.
Rather than banning them entirely, either in the short or long term, we need to make sure they are built wisely, and in the right places. It’s somewhat similar to tax-increment financing when someone wants to build a new stadium somewhere: they get lower taxes in exchange for assistance upgrading nearby infrastructure that they need for their project.
First of all, a data center project could be the benefit of a TIF deal directly, just like any other big project anywhere in the state. Separately, someone who wants to build a new data center could strike agreements with the local utilities over almost anything: rates, infrastructure, upgrades, whatever. That could abate any fears over the costs of new upgrades being passed on to ratepayers, or rates going up just because there’s immense, new, high-priced demand on the grid.
While utility companies operate in a free market, it’s a limited one. If someone wants to build a data center in Maine, they’re almost certainly going to have to negotiate with Central Maine Power or Versant, regardless of whether it’s in Fort Kent or Kittery. That gives the utility company leverage if they really want to build here.
We have a couple of advantages that would make us ideal for data centers. For one, our climate. Data centers need a lot of cooling for the processors, and Maine’s naturally cooler climate makes that much more cost-effective (and also more energy-efficient). Cooling is always hugely important in computing, and these data centers are some of the largest computing facilities ever built.
Another is land availability. Maine has wide swaths of land available for development all over the state, something that just doesn’t exist everywhere. Our land is not only available, it’s affordable. We also have access to clean power all around (hello, New England Energy Connect!), and we’re near big population centers like New York and Boston.
Now, we have our disadvantages as well. Our grid capacity isn’t huge, fiber isn’t widely available statewide, and our remoteness hampers logistics and workforce recruitment. None of these are necessarily under our control, but another is: our regulatory environment. As for grid capacity, as time goes on, we could build new, clean power plants for data centers, and that could benefit all of us. Indeed, that will probably be the new model, but it’s a ways down the road.
Rather than throwing up walls in the face of building AI data centers, we ought to be openly welcoming and encouraging them, as we ought to be with all businesses all the time. Maine needs development that adds value to our state and fits with our values, and we have every chance to make that work with data centers. We shouldn’t be rejecting the concept out of hand due to reactionary fear of change.
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