States Enter Electricity Price Wars
It was bound to happen, and the only question was how long it would take. The US has limited grid capacity and electricity generation capability to handle the dual and crippling demand for AI server farms and air conditioning. Ironically, the AC demand jump is due to global warming.
Electricity rates have already begun to rise sharply in some parts of the country. In many of these, the supply vs demand scales have already started to tip. Big tech companies have tapped into grids. Under the worst of circumstances, high electricity bills can be eclipsed by brownouts and blackouts.
Fights In New Jersey
According to the AP, “Data and analytics firm Wood Mackenzie published a report in recent weeks that suggested 20 proposed or effective specialized rates for data centers in 16 states it studied aren’t nearly enough to cover the cost of a new natural gas power plant.” The news service also reported that several governors and legislators have started to take action to keep residential rates down. This includes Pennsylvania, Oregon, and New Jersey.
The problem is severe enough that it could become a major issue in state elections in 2026. If a large enough group of people is affected, it could become an issue in Congressional elections. The problem of electricity availability is not going away. It will get worse.
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
