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AI & Enterprise
U.S. cost debate grows over whether data centre boom will raise household electricity bills
As data centres rapidly expand on the back of the AI boom, concerns are growing in the United States that the cost of generation, transmission and substation upgrades could be passed on to household electricity bills. Analysts disagree on whether data centres raise residential rates, with some arguing they increase procurement costs and others citing research suggesting average retail prices can fall as fixed costs are spread across greater usage. The debate centres on cost-allocation rules and regulatory design.
AI & Enterprise
U.S. debates regulation as data center boom pressures power bills
If all data centres permitted in the United States through 2025 begin operating, annual electricity use is estimated to rise to 358.8 terawatt hours from 224.3 TWh, up 50 percent from last year’s estimate. The rise is led by hyperscale facilities needed for artificial intelligence. Analysts warn grid and generation investment could be passed on through higher power bills, while some states and counties weigh rules and debate tax incentives.
AI & Enterprise
PJM wholesale power prices nearly double in a year, data centers blamed
Wholesale electricity prices on PJM Interconnection, the largest U.S. power grid, have nearly doubled over the past year, an independent monitor said in a report. TechCrunch reported the cause was data centers. The wholesale price per megawatt-hour rose to $136.53 from $77.78 a year earlier. Monitoring Analytics said data centers and PJM failed to respond properly to surging demand and warned price shocks could grow.