Battle Over Data Centers Worsens
The primary headlines about AI data centers are that they are so energy-hungry that residential electricity bills may rise by double digits over the decade. Additionally, there may be blackouts. The battle has become a political one. Since there is money involved, that was inevitable.
Semafor reports, “A growing number of candidates in both parties are blaming high electricity costs on the boom in data center construction.” Its editor forecast the issue could become part of the national elections. Based on the next Presidential election debate, the catastrophe is rising fast enough, so this could be the case.
If the increase in residential and legacy business electricity prices is significant enough, it will begin to affect inflation, as eggs and gas prices have. In theory, electricity could account for 10% of a middle-class family’s cost of living.
Income Vs Inflation
The median household income in the US is about $82,000. After taxes, that is closer to $70,000. In some parts of the country, electricity bills are approaching $1,000 a month, and for people living below the median income, the problem will become severe.
The other consideration is that data center companies have argued that they will bring jobs along with the need for electricity. This becomes a balancing act between employment and income vs expenses, for people who live in these areas.
More from Electricity Wars
- Data Centers In The Middle Of Nowhere
- AI And AC Drive Up Electricity prices By 25%
- Air Conditioning Is Future Of Electricity
- Electricity Gets Ugly
