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U.S. Power Utilities Seek Price Hikes Due to Increased AI Data Center Demand -- a 142% increase since 2024. "A lot of states don’t have a playbook for how they can meet rising [data centre] demand while balancing affordability and utility bills.”
AI data centers are driving a surge in electricity demand, prompting U.S. utilities to seek billions in rate increases.
The publication also cited a forecast from BloombergNEF that said electricity consumption was set to more than double over the next ten years because of power-hungry AI data centers. “What we’re... seeing is a deer-in-headlights dynamic,” PowerLines executive director Charles Hua said, as quoted by the FT. “A lot of states don’t have a playbook for how they can meet rising [data centre] demand while balancing affordability and utility bills.” Utilities and regulators also seem to think this way because they are placing a greater financial burden on large industrial consumers, charging them if their demand for electricity is deemed excessive.
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