AI’s Energy Appetite: What Data Centers Mean for the Future of Electricity Prices

Discover how AI-driven data centers are reshaping electricity demand, prices, and why smarter HVAC and efficiency are critical for sustainable growth.

Ava Montini

Jan 27, 2026

Written by

Published on

Powering intelligence, shaping energy

Artificial intelligence has gone from “what if” to “what now.” We use it to draft reports, analyze data, streamline workflows, and even generate design ideas. But while the results appear on our screens instantly, what powers them is anything but invisible.

Behind every AI tool is a data center; rows of servers drawing massive amounts of power and generating equally massive amounts of heat. And with AI adoption soaring, those facilities are putting real pressure on our electricity grids.

Bloomberg recently reported that in PJM, the largest U.S. grid, capacity prices jumped sharply as AI-driven data center demand climbed (Bloomberg). For operators, this is a direct hit to energy budgets.

So while AI is exciting, it comes with a new operational reality: efficiency in cooling, airflow, and HVAC isn’t optional. It’s the difference between runaway costs and sustainable growth.

Why AI is different from past computing booms

Previous waves of digital growth (like cloud adoption) drove steady data center expansion. But AI is different. Training large models consumes enormous amounts of energy. The International Energy Agency estimates that data center electricity use could nearly double by 2030 to around 1,000 TWh, roughly equal to Japan’s entire annual consumption (IEA).

And it’s not just training. Inference: the everyday process of users asking questions or running AI tasks is multiplying demand across millions of devices. Goldman Sachs forecasts a 165% increase in data center power demand by 2030, largely due to AI (Goldman Sachs).

Cooling: a hidden energy driver

When people think about data centers, they picture racks of servers. But behind that computing load is another energy giant: cooling.

HVAC, chillers, pumps, and fans often make up 30–40% of total energy use in data centers (U.S. DOE). That means the “support systems” keeping servers at safe temperatures can rival the IT equipment itself in energy demand.

And because these systems run 24/7, even small inefficiencies snowball:

A high-resistance filter forces fans to draw extra kilowatts all day, every day.
A dirty coil reduces heat transfer, stretching compressor runtimes.
A miscalibrated damper throws airflow off balance, raising both costs and emissions.

Clogged filters can cut supply airflow by over 35%, driving higher fan power and cooling loads (MDPI). Others highlight how loaded filters in constant-speed systems directly increase electricity use (University of Texas at Austin).

Now scale that across a hyperscale AI-driven facility. A 3% efficiency penalty may look small on paper, but in practice, it can cost hundreds of thousands of dollars annually and add unnecessary CO₂e to your footprint.

That’s why low-pressure, high-efficiency filtration matters. It cuts resistance without sacrificing capture, reducing fan energy hour after hour. For operators under pressure from rising power prices and sustainability goals, it’s one of the simplest ways to shrink cooling costs while protecting uptime.

Why efficiency pays off more now

Energy savings have always lowered costs. But as grids get stressed and data center demand rises, the value of each saved kilowatt is climbing. Bloomberg recently reported that capacity prices on PJM, the largest U.S. grid, have spiked because of new data center growth (Bloomberg).

In practical terms, this changes the math:

A coil cleaning that once took years to pay for itself can now pay back in just a few months.
Smarter controls and calibrated ventilation keep you protected when prices swing.
Low-pressure filtration quietly reduces fan energy every hour, stacking up bigger savings as electricity prices rise.

The bottom line is that efficiency has become one of the fastest and most reliable ways to control operating costs in an unpredictable energy market.

Building smarter, not just bigger

For operators, the roadmap isn’t a mystery. The tools are already here:

Low-pressure filtration to keep fans efficient hour after hour.
Adaptive cooling strategies like variable-speed fans, economizers, and containment to right-size energy use.
Monitoring-based commissioning and diagnostics to stop efficiency losses before they become routine.
Load shifting and grid-aware operations to tap cleaner, cheaper hours of power (IEA).

Every watt counts

As AI expands, data centers will continue to carry a heavier share of global electricity demand. That makes efficiency less of an option and more of an operating requirement.

The lesson is simple: efficiency and reliability are not competing goals. When facilities prioritize both, they not only manage rising energy costs but also reduce their carbon footprint in measurable, reportable ways. AI may be shaping the demand curve, but how operators respond will shape the industry's long-term sustainability.

Transforming Heritage Buildings: A Deep Dive into Our IAQ Retrofit at The Historic Distillery District

Jennifer Crowley
May 3, 2024
2 min read

Updated: Jul 9, 2024

Image of the Historical Distillery District Gooderham & Worts Building — Our work at The Distillery Historic District is more than an IAQ project; it's a part of a larger conversation about managing and preserving our heritage buildings.

We are thrilled to share an exhilarating challenge we recently tackled in integrating state-of-the-art HVAC technology into the heart of Toronto's historic charm. Our venture at The Distillery Historic District, captured as a video case study, was not just about upgrading systems and improving indoor air quality (IAQ); it was a bold journey into harmonizing high-tech solutions with cherished historical aesthetics.

Why The Distillery Historic District?

The Distillery Historic District, known for its well-preserved Victorian industrial architecture, presented a unique canvas. Our goal was clear: improve functionality without disrupting the area's historic appeal. And we did just that.

Introducing the Pro Filter Series

Our innovative Pro Filter Series was the game-changer. Designed to meld seamlessly with the architectural finesse of historical sites, this series not only enhances air quality but also steps up energy efficiency—a true testament to modern technology serving historical integrity.

Here's The Impact We Made:

Revolutionized Energy Efficiency: We achieved an astounding 75% reduction in fan motor consumption. This breakthrough has set a new standard in how we energize our heritage sites, perfectly balancing ecological and operational needs.
Empowered Maintenance: By simplifying the maintenance process, we've empowered the Distillery District's facility teams. Reducing the need for external interventions, our approach makes heritage upkeep more sustainable and efficient.
Enhanced Air Quality: Improving air quality by 2.25 times, we've significantly uplifted the environment for tenants, visitors, and workers. This proves that modernization and historical beauty can coexist brilliantly.

Our Vision for Heritage Buildings

Our Heritage Building IAQ retrofit work at The Distillery Historic District is more than a project; it's a part of a larger conversation about managing and preserving our heritage buildings. It's about future-proofing these treasures so they continue to stand proud and functional for generations to come.

With innovative thinking and cutting-edge technology, no building—no matter its age—needs to sacrifice functionality or sustainability practices. We're setting the stage for heritage buildings to step confidently into the future without leaving their storied past behind.

🎥 Explore Our Journey

Watch the full case study video to see how Blade Air is helping heritage buildings embrace the future while preserving the past. Dive deeper into our transformative approach and its significant impacts on The Distillery Historic District.

Embrace the future, and honour the past. With Blade Air, history breathes new life.

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