NASHVILLE, Tenn. (WTVF) — Artificial intelligence is reinventing how we work, surf the internet, and problem-solve.
But a new Tennessee consumer watchdog group cautions that using too much AI could do more harm than good.
Tennessee Utility Consumers Alliance (TUCA) is the watchdog group aiming to protect ratepayers against rising utility rates. They are concerned that AI is putting a strain on our power grid.
"Data centers use a lot of power from nearby resources," said Issac Freeman.
Issac Freeman, the Memphis native behind the grassroots organization, says low-income families have the most to lose.
"Those that make $50,000 or less, they have to think about whether they're going to pay for food, or they're going to pay for their utility bill," Freeman said.
Roughly 170,000 low-income Tennessee households whose incomes are below 50% of the Federal Poverty Level pay almost a third of their annual income on home energy bills, according to Think Tennessee. That's significantly higher than the 6% of household income that is considered affordable. The Tennessee counties with a home energy burden of at least 34% are Bledsoe, Pickett, Grundy, Stewart, Johnson, Wayne, and Moore County.
While particularly burdensome for struggling families, this isn't just a low-income issue. Everyone is affected when rates go up.
TUCA is asking for more transparency from federal utilities like the Tennessee Valley Authority, which supplies power to most of Tennessee through local providers like NES.
"Utility companies like TVA and local distributors [should] find new innovative ways to build better power grids for us to benefit from without having to bear the cost," Freeman said.
A sharp uptick in power demand recently is in part driven by facilities like Elon Musk's xAI facility in Memphis.
"They're using a lot of resources in that area for a supercomputer. In order to power the supercomputer to keep cool, the water is being pulled from the aquifer in that city," Freeman said.
AI industry leaders say rising electricity costs aren’t just because of AI. They blame old and inefficient power grids, too.
Still, Freeman, who's part of a generation typically enthusiastic about AI, compares using it to running water, something you shouldn't leave on without thinking.
"If we're all leaving that water on for an extended period of time, there's a cost to that. And so you really want to be mindful of the cost, even if it is a necessity," Freeman said.
Is your household or small business struggling to keep up with higher utility bills? Let me know in an email at hannah.mcdonald@newschannel5.com.
