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Volts

Who is paying for all that data center power?

Mar 12, 2025
Eliza Martin, a legal fellow at Harvard, and Ari Peskoe, head of the Electricity Law Initiative, delve into the alarming rise in electricity consumption by data centers. They reveal how ordinary consumers might be footing the bill for Big Tech’s energy demands. A discussion unfolds about the cozy relationship between utilities and tech giants that risks undermining necessary reforms. The complexity of utility pricing, the potential of energy parks, and the urgent need for fair regulations add depth to their insightful analysis.
01:00:12

Podcast summary created with Snipd AI

Quick takeaways

  • The increasing electricity demand from data centers could disproportionately burden average ratepayers with infrastructure costs needed for major corporate entities.
  • Concerns over fairness arise as utilities often enter special contracts with large customers, potentially shifting costs onto ordinary consumers without proper oversight.

Deep dives

Growing Electricity Demand from Data Centers

Data centers are projected to significantly increase electricity consumption, potentially rising from 1% to 12% of U.S. electricity demand by 2030. This surge poses challenges for utilities as they must adapt their infrastructure to accommodate such massive loads, which are unlike typical new residential or commercial demands. The increase in demand from these facilities could require substantial new infrastructure investments, which might be financially burdensome for ordinary ratepayers. Concerns arise over how utilities will manage the relationships between data centers and other customers, especially regarding who will ultimately shoulder the cost of the necessary expansions.

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