For American families, costs are rising across the board.
Electrical bills are one example of where prices are climbing. These increases are not solely driven by inflation; they are also being fueled by the construction of massive data centers across the U.S.
Different states are responding to that reality in different ways, but some are looking for large tech companies to foot the bill for their own projects, the Associated Press reported.
What’s happening?
Massive data centers built by tech corporations like Microsoft, Google, Amazon, and Meta are springing up across America.
Beyond traditional functions like providing websites for online shopping, this incredible explosion of computing power is being used for generative AI applications such as ChatGPT, which is many times more resource-intensive than an ordinary computer search.
The astronomical number of computer servers inside need an equally astronomical amount of electricity to run, putting the power demands of these facilities above those of entire cities such as Pittsburgh, Cleveland, or New Orleans, according to AP News.
To provide this power, electrical utilities are building new infrastructure, including power lines and power plants. Meanwhile, the same power companies are making special deals with these tech companies to capture their business and ensure that data centers are built in their area of operation — deals that involve paying lower rates for power.
Why is the power use of data centers important?
Theoretically, new users on the power grid should cover the cost of the infrastructure needed to serve them. However, in practice, ordinary ratepayers are footing the bill.
Monitoring Analytics, an independent organization monitoring the mid-Atlantic grid, found that 70% of last year’s increases were caused by increased demand from data centers, for example.
That means that everyday consumers — like you — are paying more because someone else is using more electricity. That’s on top of all the extra pollution being generated.
This increase is “something legislators have been hearing a lot about,” according to Charlotte Shuff of the Oregon Citizens’ Utility Board, a consumer advocacy group.
“It’s something we’ve been hearing a lot about,” she told AP News. “More people are speaking out at the public utility commission in the past year than I’ve ever seen before. There’s a massive outcry.”
What’s being done about rising utility rates?
For now, legislation that might keep this issue in check is still in the works in 16 states.
However, you can opt out of paying most of these fees by generating your own electricity with solar panels. You’ll also lower the amount of heat-trapping pollution produced to power your home.
If you want to avoid up-front purchase costs, check out solar leasing options like Palmetto’s LightReach program. If leasing isn’t for you, check out EnergySage to find vetted solar installers in your area and compare quotes.
If you’re not sure whether you want to buy or lease, Palmetto has a helpful breakdown of the pros and cons.
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