AI Boom Sparks Fight Over Soaring Power Costs

Utilities across the U.S. are demanding tech companies pay larger shares of electricity infrastructure costs as AI drives unprecedented data center construction, creating tensions over who bears the financial burden of grid upgrades.

Virginia utility Dominion Energy received requests from data center developers requiring 40 gigawatts of electricity by the end of 2024, enough to power at least 10 million homes, and proposed measures requiring longer-term contracts and guaranteed payments. Ohio became one of the first states to mandate companies pay more connection costs after receiving power requests exceeding 50 times existing data center usage.

Tech giants Microsoft, Google, and Amazon plan to spend $80 billion, $85 billion, and $100 billion respectively this year on AI infrastructure, while utilities worry that grid upgrade costs will increase rates for residential customers.

Further reading: The AI explosion means millions are paying more for electricity

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