US electricity prices are set to surge by over 20% this summer due to low supply and increasing demand from data centers. The nation’s largest grid company, PJM Interconnection, cites “major pockets of significant load growth” as the reason for the price hike. Data center energy consumption is skyrocketing, with ChatGPT alone consuming as much electricity as 180,000 households.
Tech giants, including OpenAI and Google, are scrambling to secure more grid power to fuel their AI ambitions. The situation is particularly dire in Pennsylvania, where businesses are facing a 29% increase in electricity prices, prompting the governor to threaten to abandon service if prices don’t come down.
PJM’s struggles to meet demand are attributed to external factors such as the abrupt closure of fossil-fuel powered plants and delays in processing renewable power applications. The company has paused new applications to address the shortage. Amid this chaos, Microsoft is reviving Pennsylvania’s Three Mile Island nuclear power plant to fuel its AI products.
As data centers continue to grow, experts warn that AI and data center energy consumption are competing directly with humans for land, water, and energy resources. Nuclear power is seen as a potential solution, but the transition will take time. With electricity prices on the rise, consumers can expect to see higher bills in the coming months.
Source: https://uk.pcmag.com/ai/159070/shocked-by-your-electric-bill-ai-fueled-frenzy-to-hike-prices-20-in-these-13-states