Rising electric bills are putting pressure on states to regulate the massive energy demands of big tech companies like Microsoft, Google, Amazon, and Meta. More than a dozen states have taken steps to address the issue, including pressuring power grid operators to clamp down on price increases and pushing data center owners to pay a larger share of local transmission costs.
The impact of data centers on electricity bills is difficult to pin down, but studies suggest that 20 proposed or effective specialized rates for data centers in 16 states may not be enough to cover the cost of a new natural gas power plant. This means that other ratepayer classes – including residential, commercial, and industrial customers – are likely paying for data center power needs.
In Oregon, lawmakers passed legislation ordering state utility regulators to develop new power rates for data centers, which will help spread the costs across all customers. New Jersey’s governor signed legislation commissioning a study on whether ratepayers are being hit with “unreasonable rate increases” to connect data centers and to develop a specialized rate.
Meanwhile, some officials downplay the role of data centers in pushing up electric bills, citing an already tightened electricity supply and increasing costs for power lines, utility poles, transformers, and generators. However, growing evidence suggests that data center energy needs are driving up electricity bills for Americans.
The data center industry is booming, with some data centers requiring more electricity than cities the size of Pittsburgh or New Orleans. Policymakers are rethinking a system that spreads transmission costs among classes of consumers proportionally to electricity use, as billions of dollars of infrastructure are being built just for a few customers and facilities.
Source: https://abcnews.go.com/Technology/wireStory/electric-bills-rise-evidence-mounts-data-centers-share-124503792