Data Center Demand Drives $23 Billion US Power Price Hikes Through 2028
Updated
Updated · The Washington Post · Jul 7
Data Center Demand Drives $23 Billion US Power Price Hikes Through 2028
3 articles · Updated · The Washington Post · Jul 7
Summary
$23 billion in customer electricity price increases across PJM through at least 2028 were tied primarily to expected data-center demand, according to the market monitor for the 14-state region.
Rate-setting rules make it hard to charge data centers only for the costs they cause, because grid upgrades such as substations, transmission and added generation are often treated as shared system investments.
Coincident-peak pricing can further reduce data centers' assigned costs if they briefly cut usage during system peaks, even while consuming large amounts of power at other times.
Residential customers may be especially exposed because consumer advocates often cannot argue for shifting more costs onto one customer class, while data centers and other large users can fund specialized rate experts.
The risk extends beyond current bills: if projected data centers are delayed, downsized or become obsolete, utilities' long-lived infrastructure costs can still be spread across other ratepayers.