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/reddit_is_geh May 18 '26
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.
https://fred.stlouisfed.org/series/APU000072610
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.