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

fortune.com

101–110 of 132 posts

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

#101
post #61

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?

Because they like shopping on Amazon and watching Netflix?

Consumers are already paying Amazon and Netflix directly.

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

#102
post #83

Earlier 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.

Nbd sun will provide power for a few billion years still

Not the political hill to die on

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

#103
post #95

Earlier quoted context omitted.

Well, I think some of those hardworking Americans would be happy to pay some of those $2 because otherwise all the SaaS services and other services, platforms, and tools running in datacenters wouldn’t be accessible to them. Or did I read this wrong and somewhere it said only datacenters running inference or training for LLMs?

The thing people are pissed about is giving better rates to datacenters. Compare this to most of Europe (and Texas if I understood correctly) where the detacenters buy their electricity from the same market as everyone else (in Europe the spot market or futures) meaning they effectively pay the same price as everyone else. It’s when they do some back room deal with the local public utility to get 50% off and offload…

I don't think the mechanism is that different, and even if it was Europe, etc would have the same issue - data centers would still bid up the price for existing capacity, and the future capacity added to accommodate the dcs would be added at a higher marginal rate too because scarcity of new supply + base load nature of dc loads. So the problem will get worse before it gets better

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

#104
post #54

This $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.

Surely that’s a different mode for of criticism than the one in the post?

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

#105
post #95

Earlier quoted context omitted.

The thing people are pissed about is giving better rates to datacenters. Compare this to most of Europe (and Texas if I understood correctly) where the detacenters buy their electricity from the same market as everyone else (in Europe the spot market or futures) meaning they effectively pay the same price as everyone else. It’s when they do some back room deal with the local public utility to get 50% off and offload…

I don't think the mechanism is that different, and even if it was Europe, etc would have the same issue - data centers would still bid up the price for existing capacity, and the future capacity added to accommodate the dcs would be added at a higher marginal rate too because scarcity of new supply + base load nature of dc loads. So the problem will get worse before it gets better

Yes datacenters inccrease the prices here but they don't get a cheaper price then everyone else. There is a massive difference there.

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

#106
post #105

Earlier quoted context omitted.

I don't think the mechanism is that different, and even if it was Europe, etc would have the same issue - data centers would still bid up the price for existing capacity, and the future capacity added to accommodate the dcs would be added at a higher marginal rate too because scarcity of new supply + base load nature of dc loads. So the problem will get worse before it gets better

Yes datacenters inccrease the prices here but they don't get a cheaper price then everyone else. There is a massive difference there.

Concrete examples? Quick google only shows small discounts for DCs relative to other wholesale industrial consumers, which could be partially explained away by the flat load, lack of stability concerns, no need for power factor correction hardware, etc. I think 'bidding up the market' is the dominant mechanism, here in Australia (spot market + futures) consumer prices are projected to increase 26%.

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

#107
Personally, some of my electricity bills will soon be rising because of changes to how rates are computed. The added "demand charge" will penalize customers that have variable loads, while benefiting data centers with relatively constant loads.

Also IMHO, we are building way too many data centers right now. It reminds me a lot of the Y2K dot.com crash, and all of the residual dark fiber.

I spotted this article today that claims it's all in our imagination.

https://www.city-journal.org/article/data-centers-arent-rais...

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

#108
post #24

Isn't almost all of the datacenter build out for inference, rather than training? If so, what's the issue? If the electricity demand is coming from actual use, then why are people getting mad at datacenters or AI companies, rather than the actual people driving the demand? It's like getting mad at Amazon for how much they increased fuel prices, which they surely did, given all the fuel that their trucks/planes burn.…

Bruh.... I've climbed those acai trees with locals in Brazil, and when I saw the thickness and richness of real, purely ground acai, and the dilute garbage ( cough sambazon cough ) they sell in the US, and mentioned how much it costs in the US.... the guy froze and thought he misheard me. A local friend turned and warned me "don't tell them that, because it'll create frustration and anger he can't do anything about."…

Most raw materials cost less than the final consumer-facing good made from those raw materials, because of all the costs that go into turning the raw materials into a useful product to sell to customers - why should ground acai be any different? If those people climbing acai trees in Brazil know what acai costs in the US or know that the product they have is better quality than what gets exported to the US, they can in principle use this information to create a better or cheaper acai export business than the people they're currently selling their ground acai to and undercut them.

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

#110

Earlier quoted context omitted.

When they gave water to big ag, we got to buy food. With this, we pay extra to lose our jobs.

The ag water was used to grow hay which was shipped to China and Brazil...

And corn which was used to make energy (as ethanol) at a fraction of the land efficiency of solar.

https://www.anthropocenemagazine.org/2025/04/new-study-compa...

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