Saturday, May 16, 2026

But, electric rates aren't the only concern-----The Electricity Myth: Data Centers Aren’t the Villain

Public backlash toward data centers is escalating.  - Kristen Walker
  • Extreme resistance includes an Indianapolis councilman receiving 13 bullet holes through his front door and OpenAI CEO Sam Altman’s San Francisco home targeted with a Molotov cocktail and gunfire.
Communities express concerns regarding noise levels, potential tax breaks, water usage, the advancement of artificial intelligence (AI), and electricity demand...
But on the energy front, growing evidence is disproving any correlation between data centers and high electric bills; in some cases, data centers are lowering rates.
  • The primary mechanism behind the electricity price drops amid data center expansion trend—as seen in multiple states—is utilities’ ability to distribute the high fixed costs of building and maintaining grid infrastructure across a higher total consumption of electricity...
  • Data centers add a lot of steady, predictable load. Consistent round-the-clock electricity consumption at high volumes sells more kilowatt-hours, bringing more stable revenue for the utility. A lower cost per unit of electricity results...

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