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Data centers have hiked electricity prices on the public by $23B

fortune.com

61–70 of 132 posts

Re: Data centers have hiked electricity prices on the public by $23B

#61

It's important to ground the increase in raw numbers. The total revenue for electricity generation was $514b in 2024. So this was a 4-5% increase in costs. And if it is being invested in better generation and our aging infrastructure, that seems fine.

Sure, but why should regular people pay for the upgrades needed to power data centers? The tech companies can surely afford that easily given their record profits for the past decade?

Re: Data centers have hiked electricity prices on the public by $23B

#62
post #4

> But what if the power company needs to upgrade the substation to handle the increased needs of the data center? Or secure additional sources of electricity? In these cases, the investments are part of the electricity grid that everyone uses. These costs will likely be shared among all customers. Okay but this is a policy choice. It doesn’t have to be that way.

In the US this isn't even true. The costs of grid upgrades are paid new capacity up front, which actually means there is a queue for grid connections twice the US total production, with no costs to ongoing customers.

It varies by jurisdiction in the US.

Re: Data centers have hiked electricity prices on the public by $23B

#63
post #34
post #28

Earlier quoted context omitted.

I'm really tired of reading comments like this"this is a policy choice" when these companies are straight up bribing politicians or exploiting their conflicts of interest to make this their policy. The public doesn't have a choice when all our leaders are bought and paid for by oligarchs and their businesses.

Comments like this are even more tiring. Everyone knows that there are moneyed interests in politics. But decisions on these issues are made at a local level and so are the most addressable by local political actions.

So what? You're saying local officials can't be corrupted by campaign donations? Because that's a hot take.

Re: Data centers have hiked electricity prices on the public by $23B

#64
post #61

It's important to ground the increase in raw numbers. The total revenue for electricity generation was $514b in 2024. So this was a 4-5% increase in costs. And if it is being invested in better generation and our aging infrastructure, that seems fine.

Sure, but why should regular people pay for the upgrades needed to power data centers? The tech companies can surely afford that easily given their record profits for the past decade?

Forcing all costs on to new entrants in a market is generally a bad thing for the market and causes it to not expand fast enough. Also they may just choose to not participate in the market at all. I.e they'll bring in a whole lot of natural gas generators, put them in the parking lot and call it good, which is not a good thing long term.

Re: Data centers have hiked electricity prices on the public by $23B

#65

It's important to ground the increase in raw numbers. The total revenue for electricity generation was $514b in 2024. So this was a 4-5% increase in costs. And if it is being invested in better generation and our aging infrastructure, that seems fine.

The fact they gave a raw number instead of a percent of a quantity that is a change hinted that this was the case. $23B is more impressive than 4%.

Imagine a mortgage rate raising by 4%. Still unimpressive ?

Re: Data centers have hiked electricity prices on the public by $23B

#66
post #36

Data centers should at the very least build their own renewable energy generation. It would set the right incentives in place and encourage investment in clean energy generation solutions. It would also present a very compelling problem to direct all that new AI compute towards solving.

The challenge is timing. Power is a relatively low share of the cost of a modern data center, but the length of time it takes for approvals and construction for solar means it would substantially slow down the construction vs. using grid+natural gas turbines which are faster to build and get approval for.

I'm 100% on board with charging data centers more for their power usage. They can afford to pay the extra costs. They would much rather pay in dollars vs. in time.

Re: Data centers have hiked electricity prices on the public by $23B

#68
post #34
post #28

Earlier quoted context omitted.

I'm really tired of reading comments like this"this is a policy choice" when these companies are straight up bribing politicians or exploiting their conflicts of interest to make this their policy. The public doesn't have a choice when all our leaders are bought and paid for by oligarchs and their businesses.

Comments like this are even more tiring. Everyone knows that there are moneyed interests in politics. But decisions on these issues are made at a local level and so are the most addressable by local political actions.

In my area there is quite a lot of mobilized anti-data center action that is completely ineffective. There is no legal way to remove corrupt local politicians from office that prevents the harm from being done.

And I mean this as in, local government ostensibly representing the community are also the land owners and contractors selling to developers, who can't be voted out of office until next year at the earliest and whose contracts and permits can't be revoked by a subsequent administration.

How exactly are you supposed to stop that?

Re: Data centers have hiked electricity prices on the public by $23B

#69

It's important to ground the increase in raw numbers. The total revenue for electricity generation was $514b in 2024. So this was a 4-5% increase in costs. And if it is being invested in better generation and our aging infrastructure, that seems fine.

It's 4-5% increase when averaged out across the population. Some have personally faced much larger increases.

Re: Data centers have hiked electricity prices on the public by $23B

#70

It's important to ground the increase in raw numbers. The total revenue for electricity generation was $514b in 2024. So this was a 4-5% increase in costs. And if it is being invested in better generation and our aging infrastructure, that seems fine.

>> if it is being invested in better generation and our aging infrastructure

If.

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