AI is happening. It may need regulation, but its benefits are too significant to suppress. If AI continues to grow, data centers filled with expensive microprocessors will be built to provide the computing power. As those data centers come online, we will need much more electricity. Are we headed for a nationwide shortage of electric power?
Apparently, Lois Lane has put in a call for Superman, and he has appeared in the form of Elon Musk. While Elon may be controversial, he has undeniably had a major impact on our world, and he is not done yet. He has proposed a creative solution to the looming electric power challenge, both near-term and long-term.
Near-Term Solution. Tesla is already building containers filled with rechargeable lithium-ion batteries for electric utilities to purchase. These containers are called Megablocks. They store energy at night when demand is low and feed it back into the grid during the day when demand is high.
Megapacks look like white intermodal containers. The newest version is produced at a facility in Houston. Donna and I see them on 18-wheelers traveling north on Highway 37. The benefit to our economy is a substantial increase in the effective capacity of our electric utilities at a relatively modest cost.
Long Term. One of the most startling revelations from the SpaceX road show leading up to the public offering is that Elon Musk plans to deploy up to 1 million data centers in orbit around Earth. The power would be supplied by solar panels, and in space, there are no issues with noise or heat.
But you say, “If it works...” Most of the technology involved has already been proven by the Starlink satellites. Still, you may be dubious. You may say, “It will cost a huge amount of money,” but remember, this is Elon Musk. As Gilda Radner’s Roseann Roseannadanna would say, “Well, that’s different. Never mind.”
The Data Center. A data center is a building full of AI microprocessors that perform tasks and produce output normally requiring human intelligence. A huge data center is being planned for Sulphur Springs. It is on the eastern edge of Sulphur Springs, closest to Mount Vernon. If you look south from I-30 as you approach Sulphur Springs, you can see the land that has been cleared.
A lawsuit focused on noise and power needs has delayed the project. Many communities are welcoming the data centers, but with the friendly admonition to “bring your own power”. In the case of Sulphur Springs, the noise can be mitigated, and a natural gas pipeline is located a few miles away. The data center will tie into the pipeline, and natural gas turbines made by GE Vernova will be used to generate power. Details still need to be worked out, but it appears likely that the project will move forward.
The data center will be enormous. It will include ten buildings of 300,000 square feet each, for a total of 3 million square feet. For comparison, the large building at Lowe’s Distribution Center is just shy of 1 million square feet, so picture a facility three times the size of that building.
The financial impact of the project on Sulphur Springs will be significant. Property taxes from the data center could exceed the total property taxes from everything else in Hopkins County. It will take a few years for construction to be completed and for the property taxes to start, but imagine what that added revenue could mean for parks, entertainment events, and other amenities the city will be able to offer.
Sulphur Springs’ growth will benefit the surrounding area, including Mount Vernon. New residents will be drawn to Mount Vernon’s relaxed country lifestyle, excellent school system, and Lake Cypress Springs. The Sulphur Springs EDC is already preparing for that growth, and one priority is a new hotel.
Impact on Mount Vernon. Mount Vernon already needs an upscale hotel, and growing demand from Sulphur Springs will make that need even greater. Fortunately, the Franklin County Industrial Foundation owns land behind Starbucks with access to both the I-30 service road and Highway 37. The location is ideal for a hotel and is only about 20 minutes from the new data center.
Our Future. Mount Vernon has a promising future ahead. Lithium projects will bring new investment to our town, and the spillover from Sulphur Springs’ enormous windfall will add even more momentum. The school renovation will be completed in the coming school year, making an already outstanding school system even better. Hang on to your cowboy hats—it’s going to be fun!
