Data centers were actually making electricity costs cheaper, but the $7 trillion buildout with no guaranteed AI demand is threatening the trend
In the era of hyperscalers, the rising unpopularity of data centers has become inextricably linked with the fear of skyrocketing utility prices. A YouGov poll administered last year found that among 1,000 Americans, more than two-thirds expected electricity prices to rise if a data center was built in their area. The research suggested that up until at least 2024, data center operations defied consumer anxieties and actually caused retail electricity costs to decrease.
- ▪In the era of hyperscalers, the rising unpopularity of data centers has become inextricably linked with the fear of skyrocketing utility prices.
- ▪A YouGov poll administered last year found that among 1,000 Americans, more than two-thirds expected electricity prices to rise if a data center was built in their area.
- ▪The research suggested that up until at least 2024, data center operations defied consumer anxieties and actually caused retail electricity costs to decrease.
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In the era of hyperscalers, the rising unpopularity of data centers has become inextricably linked with the fear of skyrocketing utility prices. A YouGov poll administered last year found that among 1,000 Americans, more than two-thirds expected electricity prices to rise if a data center was built in their area. Earlier this year, Goldman Sachs projected the AI infrastructure buildout to increase electricity costs by 6% between 2026 and 2027, and an additional 3% by 2028.Recommended Video But a recent working paper from the Electric Power Research Institute is complicating the relationship between the AI boom and what it means for Americans’ electric bill.
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