Data center boom may transfer electricity costs to ratepayers

Michael Puttré | Source: PV Magazine | Posted 03/15/2025

Keyword Tags:

The growth in data centers is creating significant new demands on power generation in the United States, perhaps accounting for 12% of all electricity demand by 2030. This represents a quintupling of annual demand growth. Utilities are eager to attract this business, which expected to be worth hundreds of billions of dollars.


AI generated summary

The rapid growth of data centers in the United States is projected to significantly increase electricity demand, potentially accounting for 12% of total demand by 2030. This surge is prompting utilities to aggressively pursue data center projects, which could lead to substantial financial implications for other ratepayers. A report from Harvard University's Environmental & Energy Law program highlights concerns that utilities may be offering favorable, often secret contracts to attract data centers, resulting in the costs of new infrastructure being shifted to ratepayers who do not benefit from the additional capacity.

The report indicates that public utilities commissions (PUCs) frequently approve these contracts with minimal scrutiny, allowing utilities to bypass established rate structures. This could lead to increased costs for ratepayers if data centers do not utilize their projected electricity needs or if new technologies reduce power requirements. The authors recommend that PUCs implement stricter guidelines for reviewing special contracts and suggest the creation of “energy parks” where data center builders would be responsible for their energy generation, promoting low-carbon solutions in line with corporate sustainability goals.



Link to Original Article

Please find the link to the full article below. (Please note that content provider might require a paid subscription)


Source Link: https://pv-magazine-usa.com/2025/03/14/data-center-boom-may-transfer-electricity-costs-to-ratepayers/

Create a free trial account: Sign Up

Grid monitor is free to try. No credit card required


Already have an account? Login

Most Active PUCT Filings

APPLICATION OF ENTERGY TEXAS, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE SETEX AREA RELIABILITY PROJECT IN JASPER, MONTGOMERY, NEWTON, POLK, SAN JACINTO, TRINITY, TYLER, AND WALKER COUNTIES - (397 filings)

APPLICATION OF CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC FOR APPROVAL OF ITS 2026-2028 TRANSMISSION AND DISTRIBUTION SYSTEM RESILIENCY PLAN - (90 filings)

CY 2024 ANNUAL POWER LINE INSPECTION & SAFETY REPORT IN PURSUANT TO 16 TAC § 25.97(F) - (82 filings)

APPLICATION OF ENTERGY TEXAS, INC. TO AMEND ITS CERTIFICATE OF CONVENIENCE AND NECESSITY TO CONSTRUCT A PORTFOLIO OF DISPATCHABLE GENERATION RESOURCES - (70 filings)

BROKER REGISTRATIONS - (69 filings)

PROJECT TO SUBMIT EMERGENCY OPERATIONS PLANS AND RELATED DOCUMENTS UNDER 16 TAC § 25.53 - (62 filings)

APPLICATION OF EL PASO ELECTRIC COMPANY FOR AUTHORITY TO CHANGE RATES - (60 filings)