Earlier quoted context omitted.
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.
Data centers have hiked electricity prices on the public by $23B
81–90 of 132 posts
Re: Data centers have hiked electricity prices on the public by $23B
#82> 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.
Where I live, if a developer wants to build a subdivision, they pay for the water and sewer lines. They pay to connect those lines to the city infrastructure. If the city infrastructure needs to be upgraded to handle the new volumes, they pay for at least a proportionate share of that too. The ongoing maintenance becomes part of the city's budget eventually, but not the costs of the build out. All those costs go into…
Re: Data centers have hiked electricity prices on the public by $23B
#83This $23B number that gets thrown around is not the increase to the public. The wording in the referenced report is > Based on actual auction clearing prices and quantities and uplift MW, inclusion of existing and forecast data center load growth resulted in a combined total increase in capacity market revenue for the 2025/2026 BRA, the 2026/2027 BRA, and the 2027/2028 BRA of $23,100,955,341. This is the increase in…
Or how about this framing (using your own numbers): for every dollar a datacenter is charged for electricity, regular hard-working Americans get charged $2.
Re: Data centers have hiked electricity prices on the public by $23B
#84PJM’s market monitor estimates data-center demand added $23.1 billion to regional wholesale capacity costs across three delivery years through 2028.
Re: Data centers have hiked electricity prices on the public by $23B
#85Earlier quoted context omitted.
Or how about this framing (using your own numbers): for every dollar a datacenter is charged for electricity, regular hard-working Americans get charged $2.
First they gave all the water away for free to big ag, and now they're doing the same with the power.
With this, we pay extra to lose our jobs.
Re: Data centers have hiked electricity prices on the public by $23B
#86This $23B number that gets thrown around is not the increase to the public. The wording in the referenced report is > Based on actual auction clearing prices and quantities and uplift MW, inclusion of existing and forecast data center load growth resulted in a combined total increase in capacity market revenue for the 2025/2026 BRA, the 2026/2027 BRA, and the 2027/2028 BRA of $23,100,955,341. This is the increase in…
Or how about this framing (using your own numbers): for every dollar a datacenter is charged for electricity, regular hard-working Americans get charged $2.
Or did I read this wrong and somewhere it said only datacenters running inference or training for LLMs?
Re: Data centers have hiked electricity prices on the public by $23B
#87Earlier quoted context omitted.
Where I live, if a developer wants to build a subdivision, they pay for the water and sewer lines. They pay to connect those lines to the city infrastructure. If the city infrastructure needs to be upgraded to handle the new volumes, they pay for at least a proportionate share of that too. The ongoing maintenance becomes part of the city's budget eventually, but not the costs of the build out. All those costs go into…
The “affordable” housing thing seems like such a misdirection. I can’t help but daydream that some moneyed interest somewhere fans those flames, as it looks like a dead end that can absorb endless fervor. You know what you do if you want an affordable car? You buy used. I think most people understand Ford is never going to build another a car that costs $10k brand new, and the last new car near that price barely sold…
And the car analogy is n9t fitting, unless we talk about cars bundled with the parking spot. But then they would not depreciate that much, and the banger with a parking spot in Manhattan would cost more than the Ferrari that could only park in shitsville.
Re: Data centers have hiked electricity prices on the public by $23B
#88It'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
#89Earlier quoted context omitted.
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.
Forcing all costs into externalities is also not ideal. Right now, some state's systems, force residential consumers to pay for new infrastructure for new demand while only minimal costs are paid by the new customer.
Re: Data centers have hiked electricity prices on the public by $23B
#90Earlier quoted context omitted.
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.
Why would any reasonable governing entity (I understand we live in a world where there are not many of these) allow you to run a bunch of natural gas generators in a parking lot?