AI, Grid Stress, and the Rising Cost of Cooling

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

Ava Montini

Feb 24, 2026

Written by

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How artificial intelligence is reshaping electricity markets and redefining efficiency inside data centers and real estate portfolios

Across North America, electricity load forecasts are being revised upward as hyperscale campuses, colocation expansions, and AI clusters come online. Grid operators are responding to a new reality: computing growth is accelerating faster than generation and transmission capacity.

Global data center electricity consumption could reach 1,000 terawatt-hours annually by 2030, roughly equivalent to the annual consumption of Japan. In the United States, PJM Interconnection has reported a sharp increase in capacity auction prices as new large-load customers, including AI-driven data centers, enter the interconnection queue.

Goldman Sachs forecasts a 175% surge in global data center power demand by 2030, a significant upward revision driven by the rapid adoption of AI infrastructure and intensive GPU requirements. This surge is expected to raise data centers’ share of U.S. electricity consumption to approximately 8% and contribute to a 10–15% increase in European power demand over the next decade.

AI Workloads Are Structurally Different

Previous digital expansion cycles, including early cloud adoption, drove steady and predictable growth. AI changes the profile of demand.

Training large language models requires sustained, high-density compute over extended periods. Inference activity multiplies that demand across millions of daily interactions. Rack densities are climbing. Thermal loads are intensifying. Mechanical systems are operating closer to their performance limits for longer durations.

Higher density translates directly into greater airflow sensitivity and tighter thermal tolerances. Small inefficiencies that were once negligible now compound materially across 8,760 operating hours per year.

Cooling Is a Major Line Item, Not a Support Function

In many modern facilities, mechanical systems account for 30 to 40 percent of total site energy consumption. That includes chillers, pumps, CRAH and CRAC units, and most consistently, fans.

Fan energy is particularly sensitive to system resistance. Based on affinity laws, fan power scales approximately with the cube of airflow. As static pressure increases, required fan energy rises disproportionately. Even modest increases in resistance can translate into meaningful increases in kilowatt draw.

Filtration is one of the most persistent contributors to system resistance. As filters load or when they have a high baseline pressure drop, fans compensate continuously. This is not a temporary event. It is a compounding operational penalty.

For a 20-megawatt data center, cooling and mechanical systems often account for 30 to 40 percent of total facility energy use. That equates to roughly 6 to 8 megawatts dedicated to cooling infrastructure.

Even modest efficiency improvements at this scale are financially meaningful. A 5 percent reduction in cooling-related fan energy would reduce load by approximately 300 to 400 kilowatts. At an electricity price of $0.10 per kilowatt-hour, that translates to roughly $260,000 to $350,000 in annual energy cost savings, before considering demand charges or capacity pricing exposure.

In regions with constrained supply or rising capacity costs, the economic value of that reduction increases further.

Grid Stress Is Changing the Economics of Efficiency

Electricity markets are tightening in regions experiencing concentrated data center growth. Capacity auctions in PJM have reflected the strain of new large-load interconnection requests. Transmission upgrades require time. Generation additions face permitting and capital constraints.

As reserve margins narrow, price volatility increases. Capacity charges, peak demand pricing, and long-term power purchase agreements are becoming more complex and more expensive.

For data center operators, efficiency becomes a hedge against volatility. Each kilowatt not consumed reduces exposure to price swings and capacity premiums. For REITs with diversified portfolios, it strengthens net operating income resilience across properties facing similar market pressures.

Scope 2 emissions reporting adds another layer of accountability. Institutional investors increasingly evaluate carbon intensity alongside operating performance. Mechanical efficiency directly influences both.

Energy savings are no longer incremental improvements. They are risk mitigation tools.

Designing for AI Without Expanding Energy Budgets

The strategic response does not require speculative technology. It requires disciplined optimization of existing systems.

Three priorities stand out:

1. Reduce persistent static pressure

Airflow resistance accumulates silently over time. Low-pressure, high-efficiency filtration technologies reduce baseline resistance while maintaining particulate capture performance. This lowers continuous fan energy and protects downstream equipment.

2. Optimize thermal management architecture

Variable-speed fans, containment strategies, and calibrated ventilation align airflow with actual load rather than worst-case assumptions. This stabilizes thermal performance under higher rack densities.

3. Institutionalize monitoring-based commissioning

Continuous diagnostics prevent efficiency drift. Small degradations in airflow or heat exchange are corrected before they become embedded in long-term energy profiles.

The Competitive Advantage of Thermodynamic Discipline

Artificial intelligence will continue to expand electricity demand. That trajectory is supported by credible projections from global energy authorities and financial institutions. The constraint is not computing ambition. It is infrastructure capacity.

Facilities that treat thermodynamic efficiency as core infrastructure rather than as an ancillary optimization will outperform in this environment. Lower static pressure, calibrated airflow, and disciplined mechanical management translate directly into reduced exposure to grid stress and electricity price escalation.

The economics are clear. As AI reshapes the demand curve, cooling efficiency becomes one of the most controllable variables in an increasingly uncontrollable market.

Data centers are powering intelligence.

Efficiency will determine who powers it profitably.

What is Radon Poisoning? Sources, Symptoms and Prevention

Jennifer Crowley
Jun 29, 2023
3 min read

Updated: Jul 9, 2024

Base corner of an eroded brick building in the background with a magnifying glass identifying the periodic table formula for Radon (86 RN Radon <222>) — Good ventilation can help to reduce radon levels in your home by allowing fresh air to circulate and helping to dilute any radon that may be present.

Radon is a colourless, odourless, and tasteless gas that is formed by the decay of naturally occurring uranium in soil, rock, and water. It can seep into buildings through cracks and openings in the foundation and build up to dangerous levels over time.

Radon poisoning occurs when a person inhales high levels of radon gas for extended periods. When radon is breathed in, it can damage the lungs and potentially cause lung cancer.

Sources of Radon

It’s essential to be aware of the risks of radon poisoning, especially if you live in an area known to have high levels of radon or if you spend a lot of time in buildings where radon is likely to be present.

Some common sources of radon include:

Rocks and soil: After being released from bedrock material, radon passes through the soil, diluting in the air before entering buildings. Granites, migmatites, some clays and tills are particularly rich in uranium and radium, which decay into radon. Radon exhalation from the ground beneath buildings is the main source of radon in indoor air.
Water: Radon can dissolve and accumulate in groundwater sources, such as water pumps or drilled wells in uranium-rich geological areas. Radon in water can be released into the air during routine water use, such as showering or laundry.
Natural gas: Radon can be present in natural gas, which can then be released into the air when the gas is burned. This can be a concern in homes that use natural gas for heating or cooking.

The risk of radon poisoning can vary depending on the location of the building and the specific sources of radon. In general, homes and buildings in areas with high levels of uranium in the soil or rock are more likely to have high levels of radon. Additionally, older homes and buildings are more likely to have higher radon levels due to factors such as poor ventilation and foundation cracks.

Symptoms of Radon Poisoning

The most common symptom of radon poisoning is lung cancer. According to the Environmental Protection Agency (EPA), radon is the second leading cause of lung cancer in the United States after smoking, and it’s estimated to cause about 21,000 lung cancer deaths per year. The risk of lung cancer from radon exposure is higher for smokers, as the combination of smoking and radon exposure can greatly increase the risk of lung cancer.

Other symptoms of radon poisoning can include:

Persistent coughing
Shortness of breath
Chest pain
Wheezing
Hoarseness
Difficulty swallowing
Loss of appetite
Fatigue
Respiratory infections such as bronchitis or pneumonia

Prevention of Radon Poisoning

There are steps you can take to reduce your exposure and lower your risk of developing symptoms or health problems related to radon poisoning. Here are some prevention tips to keep in mind:

Test your building or home for radon: The first step in preventing radon poisoning is to have your home tested for radon. A certified radon testing professional can conduct a test to determine the radon levels in your home and recommend appropriate steps for mitigation if necessary. Testing is essential if you live in an area with high levels of radon or if you have reason to believe that your home may be at risk.
Increase ventilation: Good ventilation can help to reduce radon levels in your home by allowing fresh air to circulate and helping to dilute any radon that may be present. You can increase ventilation by opening windows and doors, using exhaust fans in bathrooms and kitchens, and installing a heat recovery ventilator (HRV) or energy recovery ventilator (ERV) system.
Quit smoking: If you smoke, quitting can significantly reduce your risk of developing lung cancer from radon exposure. Smoking is the leading cause of lung cancer, and combining smoking and radon exposure can greatly increase the risk of developing the disease.
Contact qualified contractor: Seal cracks in floors and walls with plaster, caulk, or other materials designed for this purpose. Contact a qualified contractor in your area for information on how to fix radon problems yourself.

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