Data Center Demand For Electricity Provokes US Government Response
CleanTechnica • • business
Key Points:
- The surge in artificial intelligence has led to a massive increase in electricity demand, with data centers requiring gigawatts of power but hesitant to commit to long-term usage, causing uncertainty for utility companies.
- This uncertainty has driven up electricity prices in the US, with retail prices hitting record highs and costs attributed to data centers causing a significant wealth transfer to consumers.
- Some regions, like Ireland and Ohio, have implemented policies to ensure data centers secure their own power supply and commit to paying for needed infrastructure upgrades, aiming to balance interests among ratepayers.
- The US government plans to hold auctions for 15-year electricity contracts for tech companies in the PJM grid region, guaranteeing revenue for new power plants, a move that surprised the grid operator and
