Energy Secretary Disputes Data Centers Driving Up Power Bills

Got story updates? Submit your updates here. ›

As data centers continue to expand across the United States, a debate has emerged over whether they are contributing to rising electricity bills. Energy Secretary Chris Wright claims that data centers are not causing Americans to pay more for power, arguing that increased demand could actually help lower prices. However, experts and consumer advocates warn that the rapid growth in data centers and cryptocurrency mining could significantly increase electricity demand and generation costs, potentially leading to higher utility bills for customers, especially in high-growth regions.

Why it matters

This debate highlights the tension between the government's push to expedite data center development and the concerns from experts and consumers about the potential impact on electricity prices and grid stability. As data centers become more prevalent, policymakers and regulators will need to carefully balance the economic benefits of this industry with the potential costs to ratepayers.

The details

The White House has signed executive orders to speed up permits for data center construction, but President Trump also believes tech companies should build their own power plants to meet their energy needs. Energy Secretary Chris Wright argues that data centers are not driving up electricity bills, and that increased demand could actually lower prices. However, researchers at Carnegie Mellon University's Open Energy Outlook Initiative have found that rapid growth in data centers and crypto mining could raise U.S. power generation costs by about 8% by 2030, with some high-growth regions facing much sharper price hikes. A lawyer representing ratepayers in Baltimore says customers are paying about $32 more per month on average compared to a year ago, largely due to data centers. Lawmakers have introduced bills aimed at protecting consumers from data center-related costs and increasing transparency around energy use and infrastructure spending.

• The White House has signed executive orders to expedite permits for data center construction.
• Researchers at Carnegie Mellon University found that data centers and crypto mining could raise U.S. power generation costs by about 8% by 2030.

What they’re saying

What’s next

Lawmakers in Congress have introduced bills aimed at insulating consumers from data center-related costs and increasing transparency around energy use and infrastructure spending.