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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

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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.

The Impact of Wildfires on Indoor Air Quality (IAQ): What You Need to Know

  • Writer: Jennifer Crowley
    Jennifer Crowley
  • Jul 28, 2023
  • 3 min read

Updated: Jul 9, 2024

Aerial view of an uncontrolled wildfire with massive clouds of toxic smoke
For people in close proximity to a wildfire, there’s a danger from breathing gaseous chemicals the fire emits. These include carbon monoxide, methane, acetic acid and formaldehyde.

For the most up-to-date information, including which fires are out of control, visit Alberta’s Wildfire Status Dashboard.


Wildfires are an ever-present threat in many parts of the world, and they have become increasingly frequent and severe in recent years. While the immediate impact of wildfires is often devastating, with homes and communities destroyed and lives lost, the longer-term effects on the environment and public health can also be significant.


One such impact is the effect on indoor air quality, which can have severe consequences for the health of individuals and families. In this blog, we will explore the impact of wildfires on indoor air quality and discuss what you need to know to protect yourself from the harmful effects of wildfire smoke.


What is Wildfire Smoke and What is the Impact of Wildfires on Your Indoor Air Quality?

Wildfire smoke is a complex mixture of gases, particles, and water vapour that contains:

  1. Ozone

  2. Sulphur Dioxide

  3. Nitrogen Dioxide

  4. Carbon Monoxide

  5. Volatile Organic Compounds (VOCs)

  6. Fine Particulate Matter (PM2.5)


These pollutants can harm your health, with PM2.5 posing the most significant risk. The larger or “coarse” particles in smoke irritate the eyes, nose and throat but generally don’t reach the lungs. However, the “finer” particles, a fraction of a human hair’s diameter, can wreak havoc. These tiny particles can be inhaled deep into the lungs and eventually make it into the bloodstream, making healthy people sick and sick people sicker.


There is no evidence of a safe level of exposure for most of these pollutants. This means that smoke can impact your health even at very low levels. As smoke levels increase, your health risks increase. Air quality may be decreased even if you can’t see or smell smoke.


For people in close proximity to a wildfire, there’s a danger from breathing gaseous chemicals the fire emits. These include carbon monoxide, methane, acetic acid and formaldehyde.


Symptoms of Wildfire Smoke Exposure

The more common symptoms of smoke exposure include:

  1. Headaches

  2. A Mild Cough

  3. A Runny Nose

  4. Production of Phlegm

  5. Eye, Nose and Throat Irritation


The symptoms typically associated with smoke exposure are primarily due to the irritation of the mucous membranes and respiratory tract by the fine particles contained in the smoke. Furthermore, toxic gases found in smoke, such as formaldehyde and acrolein, can exacerbate respiratory distress. It is important to note that even low levels of exposure to carbon monoxide can lead to chest pain and irregular heartbeat, especially for those with pre-existing heart conditions.


More serious health concerns can include:

  1. Dizziness

  2. Chest Pains

  3. Severe Cough

  4. Shortness of Breath

  5. Wheezing (including asthma attacks)

  6. Heart Palpitations (irregular heartbeat)


Who is most at risk?

Some people are at a higher risk of health problems when exposed to wildfire smoke, including:

  1. Seniors: the elderly are more likely to have pre-existing heart or lung conditions; they are more susceptible to the harmful effects of wildfire smoke.

  2. Pregnant women

  3. Infants and young children: exposure to smoke is especially hazardous for children with asthma and may cause more frequent or severe asthma attacks. Children, in general, may experience shortness of breath, coughing and wheezing when exposed to smoky air.

  4. People who work outdoors

  5. People involved in strenuous outdoor exercise

  6. People with existing chronic health conditions: individuals with heart disease and chronic lung diseases like asthma and emphysema; studies have linked high levels of particulate matter with decreased lung function, worsening asthma symptoms, irregular heartbeat, heart attacks and even premature death.


How to reduce your exposure to wildfire smoke?

The best way to protect your health is to reduce your exposure to wildfire smoke indoors. This can include doing the following:

  1. Keep windows and doors closed as long as the temperature is comfortable.

  2. Use recirculation settings on your HVAC system to prevent smoke from entering your home.

  3. Use a clean, good-quality air filter in your HVAC system.

  4. Use an air purifier with HEPA filtration to remove smoke from your home.

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