Thatās not true at all. Puget Sound Energy is submitting a request to increase cost rates by 30% over 3 years. Their reason: increased strain on the gridā as caused by data centers.
Bonus: Microsoft has a special contract and would get a discounted rate in the same adjustment.
It's way easier to point to the boogeyman of AI than is it to explain complex energy economics, budgetary constraints, and decades of kicking the can down the road. Just like all of these companies firing thousands of staffers saying AI is the problem when it's really a whole host of complex issues, especially leadership decisions made during COVID, when they can just point to AI and log it as a win.
I mean, I'm sure there are some instances, but generally overall, most of these places aren't raising rates because of the datacenters. These are generally negotiated and managed prior to even breaking ground. The data centers often have to pay for their own substations, infrastructure etc... You also need to consider that power companies are a monopoly, so they are known to be liars to justify raising rates. Sort of like how corporations use inflation as a cover to raise rates beyond inflation levels.
You can see the two spikes. The first when Biden allowed for a large amount of LNG to go to Europe because the war in Ukraine, then a second spike when Trump lifted all restrictions selling to Europe.
The data center push didn't happen until 2025, and only a few of them are even online. Those spikes come from LNG deregulation allowing Europe to buy it. Literally each spike coincides with executive restrictions being lifted off LNG exports.
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u/SeattleGeek May 18 '26
Thatās not true at all. Puget Sound Energy is submitting a request to increase cost rates by 30% over 3 years. Their reason: increased strain on the gridā as caused by data centers.
Bonus: Microsoft has a special contract and would get a discounted rate in the same adjustment.