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.

Retrofitting Indoor Air Quality (IAQ) Systems for Existing Buildings: Overcoming Challenges and Implementing Solutions

Jennifer Crowley
Apr 9, 2024
3 min read

Updated: Jul 8, 2024

Exterior of dilapidated heritage building with broken windows faded facade and ornate design — By prioritizing IAQ initiatives, building owners can create healthier, more productive environments for their occupants while enhancing the overall value of their properties.

As the importance of indoor air quality (IAQ) continues to gain recognition, many building owners and facility managers are seeking ways to enhance IAQ in their existing structures. Retrofitting IAQ systems in older buildings presents unique challenges, but with the right strategies and solutions, it is possible to achieve significant improvements in air quality and occupant comfort.

In this blog post, we'll delve deeper into the challenges associated with retrofitting IAQ systems and explore effective solutions, including a detailed case study of a heritage building that overcame limited space, compatibility issues, and cost concerns.

Challenges of Retrofitting IAQ Systems:

Limited Space: Retrofitting IAQ systems in existing buildings often poses challenges due to limited space for new equipment and ductwork. This can make it difficult to install advanced filtration systems or ventilation upgrades without major renovations.
Compatibility Issues: Existing HVAC systems may not be compatible with modern IAQ technologies, making it challenging to integrate new components seamlessly. Compatibility issues can arise with control systems, airflow configurations, and equipment compatibility.
Cost Concerns: Retrofitting IAQ systems can be costly, especially for older buildings with outdated infrastructure. Building owners may be hesitant to invest in IAQ improvements due to budget constraints or concerns about the return on investment.
Disruption to Occupants: Retrofitting IAQ systems may require temporary disruptions to building operations, causing inconvenience to occupants and potential productivity losses. Minimizing disruption while implementing IAQ upgrades is essential to maintaining tenant satisfaction.

Solutions for Successful Retrofitting:

Comprehensive Assessment: Begin the retrofitting process with a comprehensive assessment of the existing IAQ conditions and HVAC systems. Identify areas for improvement and prioritize upgrades based on their potential impact on air quality and occupant health.
Tailored Solutions: Implement IAQ solutions that are tailored to the specific needs and challenges of each building. This may include installing high-efficiency filtration systems, upgrading ventilation equipment, or integrating air purification technologies.
Strategic Planning: Develop a strategic retrofitting plan that minimizes disruption to building occupants while maximizing the efficiency of IAQ upgrades. Coordinate with tenants and schedule work during off-peak hours to minimize inconvenience.
Investment in Technology: Leverage advanced IAQ technologies and smart building solutions to optimize air quality and energy efficiency. Investing in state-of-the-art filtration systems, sensors, and monitoring tools can provide real-time insights and ensure optimal IAQ performance.
Collaboration with Experts: Partner with IAQ experts, HVAC contractors, and building engineers to develop and implement effective retrofitting strategies. Their expertise and guidance can help you navigate complex challenges and ensure successful IAQ upgrades.

Interior photo of heritage building exposed HVAC system — Begin the retrofitting process with a thorough assessment of existing IAQ conditions & HVAC systems.

Case Study:

In a recent retrofitting project for a heritage building, Blade Air faced numerous challenges including limited space, compatibility issues, and cost concerns. However, by leveraging Blade Air filtration products designed to fit any HVAC system, conducting minor equipment upgrades, and developing a detailed plan, they overcame these hurdles. Blade Air provided assurances that the energy, maintenance, and logistical savings resulting from the IAQ upgrades would balance out the initial investment costs within two years, ultimately saving time and money for the building owner.

Retrofitting IAQ systems for existing buildings presents challenges, but with careful planning, strategic solutions, and collaboration with experts, it is possible to achieve significant improvements in indoor air quality and occupant comfort. By prioritizing IAQ initiatives and investing in modern technologies, building owners can create healthier, more productive environments for their occupants while enhancing the overall value of their properties.

Are you considering retrofitting IAQ systems in your existing building? Contact Blade Air today to learn more about our IAQ solutions and how we can help you achieve your indoor air quality goals.

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