Artificial intelligence is currently driving an unprecedented surge in electricity demand that is reversing years of progress in decommissioning fossil fuel infrastructure. In a striking shift, several long-retired or “peaker” power plants across the United States are being forced back into active service.
These facilities, which were originally designed to run only during extreme weather or rare demand spikes, are now operating more frequently to support energy-hungry data centers. This trend highlights the growing tension between the rapid expansion of Big Tech and the nation’s environmental sustainability goals.
The Fisk power plant in Chicago serves as a primary example of this new reality. Owned by NRG Energy, the oil-fired facility was scheduled for permanent retirement in 2026. However, the owner recently withdrew that notice, citing a strong economic case for keeping the units online to meet skyrocketing power requests. This decision reflects a broader pattern across the PJM Interconnection, the largest electricity market in the country. A recent analysis reveals that roughly 60 percent of coal, gas, and oil plants slated for closure in this region have either postponed or canceled those plans this year.
The economic incentives driving these revivals are substantial. During high-demand periods last summer, electricity prices on the regional grid spiked by over 800 percent. As data center requests exceed existing supplies, these older plants have suddenly become highly profitable once again. While they provide essential grid stability and prevent blackouts, they come with a significant environmental cost. Peaker plants are often decades old and lack the modern pollution controls found in newer facilities, leading to higher emissions of sulfur dioxide and other harmful pollutants.
This resurgence has raised serious environmental justice concerns among local communities. Many of these obsolete plants are located in low-income or minority neighborhoods, where residents now face increased exposure to industrial pollution. Critics argue that the push for cutting-edge technology should not come at the expense of public health in vulnerable areas. While tech companies have pledged to reach carbon neutrality, the immediate reality of their AI workloads is currently tethered to some of the oldest and dirtiest parts of the electrical grid.
Utility providers are exploring alternatives such as large-scale battery storage and upgraded transmission lines to reduce reliance on these aging plants. However, building such infrastructure takes years, while AI demand is scaling at a much faster pace. For now, the “insatiable” power appetite of data centers is keeping fossil fuel plants alive longer than anyone predicted. This ongoing transition underscores a difficult trade-off between the future of digital innovation and the urgent need to de carbonize the global energy system.
