Saturday, August 09, 2025

As electric bills rise, do data centers share blame

Amid rising electric bills, states are under pressure to insulate regular household and business ratepayers from the costs of feeding Big Tech's energy-hungry data centers.

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More from the article...

... It's not clear that any state has a solution and the actual effect of data centers on electricity bills is difficult to pin down. Some critics question whether states have the spine to take a hard line against tech behemoths like Microsoft, Google, Amazon and Meta.

But more than a dozen states have begun taking steps as data centers drive a rapid build-out of power plants and transmission lines. ...

More people are speaking out at the public utility commission in the past year than I've ever seen before," said Charlotte Shuff of the Oregon Citizens' Utility Board, a consumer advocacy group. "There's a massive outcry."

Not the typical electric customer

Some data centers could require more electricity than cities the size of Pittsburgh, Cleveland or New Orleans, and make huge factories look tiny by comparison. That's pushing policymakers to rethink a system that, historically, has spread transmission costs among classes of consumers that are proportional to electricity use.

"A lot of this infrastructure, billions of dollars of it, is being built just for a few customers and a few facilities and these happen to be the wealthiest companies in the world," said Ari Peskoe, who directs the Electricity Law Initiative at Harvard University. "I think some of the fundamental assumptions behind all this just kind of breaks down." ...


#1 | Posted by LampLighter at 2025-08-09 03:21 PM

If they're selling more electricity than ever, shouldn't it be cheaper than ever? I've always been told that's how Capitalism works.

#2 | Posted by TFDNihilist at 2025-08-10 09:30 AM

I'm sure everything has been shifted to the personal home users bills as much as possible. Protecting corporations is paramount.

#3 | Posted by fresno500 at 2025-08-10 12:00 PM

I know Duke uses a tiered billing system. Residential and commercial rates are different and there are, I think, 3 steps where, as you use more power the rate per kWh changes. So in theory a data center would be paying more per kWh then a homeowner, but not sure if that difference is enough to cover the cost of the rapid expansion.

Either way the rates they are allowed to charge are set by the state but the state frequently approves increases for pretty pathetic reasons. Recently they got to increase it due to the coal ash cleanup lawsuit. We're sorry we poisoned you. We'll clean it up, and by the way here is the bill for cleanup. So I'm sure if the utilities argue that this rapid expansion to support business in the state requires a bump to the residential customer they will be approved for it.

#4 | Posted by TaoWarrior at 2025-08-10 01:05 PM

At least they had a "reason."

Here, they just constantly claim hikes are needed to pay for needed upgrades ... but the upgrades never seem to happen.

#5 | Posted by jpw at 2025-08-10 01:25 PM

pay for needed upgrades

See your mistake is thinking that's needed upgrades to the grid. It's actually needed upgrades to their stock price.

#6 | Posted by TaoWarrior at 2025-08-10 02:28 PM

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