Setting a price for power might seem straightforward, but in reality it’s extremely complicated – and residential customers have very little influence in the decision.

Many major tech companies have pledged to pay their fair share of the costs associated with generating and transmitting more electricity to serve large data centers. But ratepayers across the United States are worried about the potential costs they might have to bear. That’s because it’s not immediately clear how the cost of data centers’ energy will be calculated. The effects of price increases are likely just beginning, and their full effects may not be felt for years.

For example, a recent report by the organization that monitors the PJM market, an area that encompasses all or part of 14 mid-Atlantic and Midwest states, concluded that expected power demand from data centers was a primary reason for US$23 billion in customer price increases that will last until at least the end of 2028.

I have studied the programs states have launched to address the needs of these large electricity customers. Prices are set by state utility commissions, who determine which customers’ rates will increase by how much to pay for new investments in electricity infrastructure. It’s not simple.

  • Wren@lemmy.todayOPMEnglish
    118·
    5 days ago

    Considering you didn’t even quote a line in the article, no. Again, it’s clear you didn’t read it.

    • FiniteBanjo@feddit.onlineEnglish
      6·
      5 days ago

      The verbatim quote is:

      That’s because it’s not immediately clear how the cost of data centers’ energy will be calculated.

          • Wren@lemmy.todayOPMEnglish
            26·
            4 days ago

            An alarming number of people on this site are so vehemently opposed to reading something in entirety before commenting on it, they hate the idea that they should.

            • FiniteBanjo@feddit.onlineEnglish
              5·
              4 days ago

              oh wow

              since you want to continue having this discussion, mind elaborating wtf that has to do with my comment?

              • Wren@lemmy.todayOPMEnglish
                15·
                4 days ago

                You responded to me? And want to know what reading has to do with a news community?

                • FiniteBanjo@feddit.onlineEnglish
                  5·
                  4 days ago

                  Listen, my comment is 100% in line with the article and relevant to the discussion. I asked you multiple times what it was that YOU disagreed with and you failed to do so.

                  Maybe it’s you not reading things before commenting.

                  • tmyakal@infosec.pubEnglish
                    11·
                    3 days ago

                    Not my circus, but:

                    Ideally, costs are allocated to the customers who cause them, but that can be complicated to determine. For example, imagine a data center is built in an area that lacks existing power lines and is located 50 yards from a nearby electric substation. It’s clear that the data center should pay to run a 50-yard power line from the substation to the data center.

                    But what if the power company needs to upgrade the substation to handle the increased needs of the data center? Or secure additional sources of electricity? In these cases, the investments are part of the electricity grid that everyone uses. These costs will likely be shared among all customers.

                    As such, it’s not immediately obvious how, despite your assertion to the contrary. The article expands on this further and also provides other examples of how and why figuring out how to split costs is messy. Might be worth reading and pointing to specific things you disagree with rather than just saying, “No, you!” over and over, if you actually want to have a conversation on the topic.