Contributed by Joe Brettell, Partner for Strategic Engagement at Prosody Group
In just a few years, Artificial intelligence (AI) has upended our cultural dialogue and economic outlook and is increasingly transforming daily life. As technology grows, there are promises of breakthroughs in healthcare to innovations in energy efficiency. However, beneath this optimism lies two formidable obstacles that could stifle its potential: the reliability and availability of power and the acceptance of the technology from the public. The interplay between AI’s energy demands and the existing strains on power infrastructure threatens not only the technology’s trajectory but also the well-being of communities across the United States.
AI’s insatiable appetite for electricity is no secret. Data centers, the backbone of AI systems, consume enormous amounts of power, and as AI models grow more complex, their energy requirements multiply. A recent study now projects that demand for power may exceed previous estimates and exceed 120 gigawatts by 2029. Moreover, the localization of data centers in specific regions often exacerbates strain on the local grid, leading to power shortages and increased costs for nearby communities. The result is a tension between technological progress and societal equity.
This conundrum is not for lack of foresight. Stakeholders in technology and energy sectors have spent years innovating to make AI systems more efficient and designing resilient energy infrastructures. However, this isn’t an issue that can be solved by technological innovation, but rather personal investment. The promise of AI is readily apparent to those who will benefit, but to successfully execute the massive undertaking required for AI to reach its potential all corporate sectors involved in the transition must begin to explain and oversee a doctrine of shared prosperity and benefit. This cannot begin too soon.
Unfortunately for most Americans, the relationship with their power company is transactional at best and antagonistic at worst. To put it simply, it’s an interaction that typically ends at the light switch. Utility bills arrive, rates increase, and during outages, trust erodes further. When it comes to AI, skepticism grows even deeper. In recent surveys, a majority of Americans express doubt about the promises of AI, often associating it with job losses, privacy concerns, or a technology that benefits only the elite.
This skepticism is compounded by the uneven distribution of technological investment across the country. Major AI hubs like Silicon Valley and Austin reap economic rewards, while rural areas and smaller cities are left grappling with the externalities—rising electricity costs, environmental degradation, and a widening digital divide.
Part of the solution lies in reframing how technology companies and utilities approach their investments. Each sector needs to make significant investments in long-term community partnerships and clearly communicate the benefits – both short and long-term to areas dealing with the growing pains of this technological transformation. Instead of viewing local communities as mere hosts for infrastructure, these entities must see them as partners. This requires intentional action on three fronts: spreading economic benefits, fostering trust, and aligning AI’s growth with community pride and aspirations.
First, the prosperity created by AI—estimated by some to total up to $1 trillion annually by 2030 when accounting for jobs, tax revenues, and local business growth—must be distributed equitably. When data centers or renewable energy projects are established in a community, they should bring tangible benefits beyond economic metrics. Historically, this was the primary appeal of major infrastructure projects, from the transcontinental railroad to the Eisenhower highway system. Additionally, local hiring initiatives, workforce training programs, and collaborations with educational institutions can ensure that residents have a direct stake in AI’s success. Additionally, companies could take a page from the oil and gas industry and consider ways to build an ecosystem of jobs that impacts the whole area – focusing on the associated, as well as direct employment will drive local support and roots that much deeper.
Second, fostering trust requires open communication and transparency. Power companies and technology firms must engage with communities early and often, addressing concerns about rising energy costs, environmental impacts, and potential displacement. This is also an opportunity for collaboration and innovation on the local level. For instance, companies building a data center could work with local officials to establish a fund for residents unable to afford rising power costs. Companies could also weigh ideas like overbuilding power capacity and dedicating a certain number of kilowatt hours to offset their impact on the grid. There are any number of solutions available, but they should be developed and implemented after consistent dialogue – not dictated without any foundational relationship investment.
Finally, investments in AI infrastructure should align with community pride and hope. Much as manufacturing and later technology provided entire regions of the country with both employment and identity, this economic evolution will happen over generations and should be approached with that in mind. People need to feel that these projects are not just economic transactions but sources of identity and aspiration. For example, a community hosting an AI-powered agricultural research facility could become a leader in sustainable farming practices, creating a sense of shared purpose and pride. Similarly, investments in public amenities like green spaces, schools, and cultural institutions can transform how communities perceive technology’s role in their lives.
The AI boom offers a chance to reimagine the relationship between technology, energy, and society. By investing in local communities, technology companies and utilities can overcome skepticism and build a coalition of trust that ensures AI’s benefits are widely shared. This is not merely a moral imperative but a strategic one. Without the support and participation of communities, the infrastructure needed to power AI’s growth will face the same resistance that has doomed badly needed utility projects in recent years, slowing progress for everyone.
In the end, AI’s promise is still in the early stages – and much like the internet before it, a host of twists and turns are absolutely certain. In order to ensure that we reach the potential of this technology and build the resources it requires, investment in communities, clear communication and mutual benefit will play just as big a role as any data center. Only then can we unlock AI’s true potential to create a future that is not only smarter but also fairer and more hopeful for all.
Joe Brettell is a Partner for Strategic Engagement at Prosody Group. He is based in Houston
Read the full article here: Solving the community relations challenge around AI
