AI And AC Drive Up Electricity prices By 25%
“Prices are increasing mainly because the spike in electricity demand—a significant portion of it from AI data centers and other superusers—is not being met with an adequate amount of new power.” Why should customers have sympathy for utilities? That does not mean utilities face trouble. Their ability to supply new electricity can be modest. Whatever increases they receive from current customers will not be sufficient for AI buildouts and the additional demands of air conditioning in parts of the country that are becoming progressively hotter.
Residential customers cannot lower the increases if they act individually. The means, to have an effect, they need to act together
Inside Climate Crisis examined federal data for both 2023 and 2024. Energy Information Administration electricity prices were up 9.5% nationwide through July. However, in some states, the increase was into the double digits.
In several states, electricity costs are up by more than 25%. A new analysis blames most of this on data center electricity use. There are no short-term answers about how to provide for legacy customers and this new, tremendously hungry set of clients.
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