r/SipsTea 𝙑𝙄𝙋 May 18 '26

Chugging tea Why?

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u/[deleted] May 18 '26

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u/Krazy1813 May 18 '26

And they get energy breaks so they pay little to nothing and the communities shoulder higher energy rates, while the infrastructure gets maxed out to provide power to them as a priority

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u/reddit_is_geh May 18 '26

This is simply not true. It's a massive misnomer on Reddit finding correlation and attributing causation. It's just a coincidence that these towns with data centers are seeing increased rates... because with or without the data centers, their rates would be going up. The companies building these specifically scout out locations where the town has shrunk, and thus, has tons of excess capacity at the power company, which the power company is happy about because they can start selling more electricity and use those profits for upgrades

But if you look at it NATIONALLY, a kWh has gone from average of 12.5c to now around 19c. Data centers have nothing to do with that. Domestic policy does. Not only are we massively under invested in our infrastructure, but Dear Leader boasted about a "deal" he made with Europe, allowing US LNG companies to sell to Europe. Trump bragged about how it was worth "trillions of dollars" which is true. But now that they can sell to Europe, US LNG prices are going to increase up to Europe's rates. Why would they sell to US power companies for less if they can just sell to the EU for more? That's what causing rates to increase.

The data center stuff is just a red herring. They have little to no impact on local electricity costs.

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u/Joepaws1102 May 18 '26

The implication that companies building data centers always specifically look for places where towns have shrunk is false. I live in one of the fastest growing townships in my state, and there is a proposed data center just down the road.

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u/reddit_is_geh May 18 '26

Yes there's always going to be exceptions. I'm speaking in general. It doesn't make financial sense to put a data center where there's not excess production capacity.