Surging electricity demand from AI data centers puts Iowa at an energy crossroads

IOWA CITY, Iowa (KCRG) - Surging power demand driven by a statewide boom in artificial intelligence data centers has brought Iowa to a critical “Fork in the Road” regarding its energy future, according to researchers across the state.

The Iowa Climate Statement 2026, signed by researchers and faculty from the University of Iowa, Iowa State University, Drake University, and dozens of colleges statewide, warns that utility decisions made now to meet rising electricity consumption will carry consequences for public health and utility bills.

According to the report, Iowa currently ranks among the top five states nationwide for data centers per capita. In Linn County alone, four facilities are under active construction, with another 17 in planning stages alongside projects across other Iowa counties. Nationally, data centers are projected to consume up to 12% of total U.S. electricity as soon as 2028, with additional load expected from broader electrification of transportation, and industry.

The report’s authors argue that rather than building new fossil fuel infrastructure to power tech facilities, Iowa should double down on wind and solar power.

“We should expand the cleaner and more affordable path of renewable energy that Iowa chose to follow more than 20 years ago,” the statement reads.

Iowa currently leads the nation in renewable generation, producing more than 60% of its electricity from wind and solar. According to the report, that transition has protected consumers from global fuel spikes and kept natural gas down to 12% of Iowa’s generation mix—compared to a national average of 41%. As a result, Iowa electric rates remain nearly 30% below national averages.

The researchers also emphasized public health outcomes, noting that reduced reliance on coal and gas significantly lowers emissions linked to illnesses.

“Unfortunately, there has been an uptick in coal usage in 2025 in order to meet the new electricity demand. Coal plants are the leading harmful source of air pollution in Iowa and air pollution is linked to premature deaths and increased cancer rates,” said Jacqueline Dowling, Assistant Professor of Civil and Environmental Engineering at the University of Iowa.

Researchers say they want a wind- and solar-dominant system, backed up by carbon-free power sources like the Duane Arnold Nuclear Power Plant. That plant is being restarted near Palo.

“Restarting an existing one may provide cost benefits compared to building a new one and the carbon and air pollution benefits of nuclear are significantly better than coal,” Dowling said.

With utilities now drafting long-term capacity plans, the scientists are calling on local officials and industry leaders to meet AI demand through expanded energy storage, brownfield solar arrays, and new wind generation rather than re-committing the state to carbon-heavy power plants.

As a reaction to the 2026 Climate Statement, Alliant Energy wrote to TV9

“Alliant Energy is modernizing the grid and advancing a balanced energy portfolio to meet future needs. We remain focused on our commitment to balancing reliability, sustainability and cost-effectiveness for customers, while making progress toward our goal of net-zero greenhouse gas emissions by 2050. Outlined in our Energy Blueprint, our long-term plan expands generation capacity and includes a balanced mix of wind, solar, hydropower, natural gas, coal and energy storage.”