AI data centers are pushing up electricity demand and fueling higher electricity prices for U. households, according to energy experts. Energy costs are rising because of several forces hitting at once: aging infrastructure that needs expensive upgrades, global supply disruptions from geopolitical conflict, and the massive capital investment required to modernize the power grid for a changing energy landscape. Energy demand from data. Tech giants such as Google, Meta, Microsoft, and Amazon are predicted to spend $364 billion this year to accelerate the construction of new data centers across the U. Credit: Nathan Howard/Getty Images The public is paying for the energy infrastructure used to power Big Tech, argues Harvard Law. Electricity prices are rising faster than inflation due to a surge in demand from data centers, outdated energy infrastructure, and increased utility spending on grid upgrades and transmission. Sign up for Staying Focused, our newsletter keeping readers up to speed on New York politics. Electricity costs have been steadily rising for years now, outpacing inflation.
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