A debate is intensifying over data-centre power costs as electricity prices surge with the expansion of AI infrastructure.

Against that backdrop, semiconductor research firm SemiAnalysis said in a report that the main causes of rising electricity prices are market design and policy decisions, not data centres, CNBC reported on March 13.

The report said a market pricing mechanism called the Base Residual Auction in the PJM Interconnection region of the United States drove a sharp rise in electricity prices. The mechanism requires customers to prepay projected electricity costs two years in advance, as a system to prepare for peak demand. But it does not reflect variables such as delays in data-centre construction, leading to prices being set higher than actual demand, it said.

In contrast, power costs have remained stable even as data centres expand in the region operated by the Electric Reliability Council of Texas, or ERCOT. The report attributed that to U.S. power regulation being decentralised by state, meaning cost pass-through differs depending on market design.

Experts are warning that if AI hyperscalers do not resolve electricity price issues, it is likely to lead to public backlash and tighter regulation, CNBC reported.