Do you have evidence that they are the problem. The research suggests otherwise. From some of the regional grids I have looked at the bigger problem has been lack of continued investment in transmission and generation. Even now I see so much push back for solar farms. People are their own worst enemy.
In the past couple decades, the vast majority of electricity demands have gone down due to modern substitutions for things people want being way more efficient. People use LED / CFL bulbs instead of incandescent bulbs, heat pumps instead of resistive heating for water heaters and house heaters, etc.
People have also deployed lots of solar to their houses.
So by every normal measure, just by looking around outside and evaluating how I live my life, even with an electric car, my power demands have gone way down.
So the fact that there's some gooner class stroking AI and crypto coins out their network ports and making my electricity more expensive, well, yeah, I'd say that nonsense is lots of externalities that should be better managed.
Residential energy reduction is one small piece of it.
The de-industrializing of the US is a much larger reason we have been able to use cheap parlor tricks vs. actually building things for the past 40ish years.
Those cheap tricks are now running out of easy gains, and the chickens are coming home to roost. At some point you run out of your grandfathers investment into future society and basic infrastructure.
To anyone paying attention to it, this problem has been a slow moving disaster for decades. It’s effectively impossible to build net new generation or large scale transmission upgrades on any reasonable timeframe or budget. Even getting a wind farm in the south end of my state interconnected to the load center metro area in the central part of the state has been over a decade so far and no ground actually broken. Just constant NIMBY.
Agree! My wish is that instead of focusing purely on demand (it’s kind of hard to disaggregate) we refocus on figuring out how to renew generation efforts and updating our transmission. I have seen the same exact issue locally. Large solar farms tens of miles away from civilization in pure farm land that get pushed back on for no good reason.
We have gotten lucky and lazy for the past few decades.
I think the "party line" is that the goal shouldn't be "1950s grid, but bigger and with more red meat!"
Renewables actually cover a lot of the newer demand and can be put around where it doesn't require as much transmission capacity because the production is happening closer to the demand.
And frankly, these jumbo sized data centers can just go figure out how to power themselves. If they want to put PV and wind and some peaker plants on their campus and they can actually meet the environmental requirements, go to it. So far they seem to be dumping AI dioxin into the local waterways, but it is probably possible to run these things without grid power.
In my whole career I've seen computers getting smaller and more efficient. Sometimes you'd need more of them, especially if your product is growing, but almost never would you need these radical increases in power draw to keep up with the red queen.
The Data-Center Boom Is Sparking a Third Wave of Inflation - https://news.ycombinator.com/item?id=48677039 - June 2026
Gartner Says Data Center Electricity Consumption to Grow 26% in 2026 - https://news.ycombinator.com/item?id=48665985 - June 2026
Nobody Here Wants the Data Center: An Oral History - https://news.ycombinator.com/item?id=48662607 - June 2026
Europe must choose between AI and climate goals, data center lobby says - https://news.ycombinator.com/item?id=48637512 - June 2026
Datacenter boom keeps dirty coal plants alive in the US - https://news.ycombinator.com/item?id=48465092 - June 2026
Majority of US’s new AI datacenters to be built on drought-hit land - https://news.ycombinator.com/item?id=48447122 - June 2026
A Farmer Donated Land to Turn into a Park. The City Is Building a Massive Data Center Instead - https://news.ycombinator.com/item?id=48446439 - June 2026
Data Center Operators Are Trying to Fix Their Water Use Problems - https://news.ycombinator.com/item?id=48401477 - June 2026
The US is now spending more on data center construction than on public transportation infrastructure - https://news.ycombinator.com/item?id=48366144 - June 2026
Ohio hits pause on datacenter tax breaks draining its coffers - https://news.ycombinator.com/item?id=48361555 - June 2026
Tracking at:
https://aidatacentermap.org/
https://www.datacenterwatch.org/
https://www.brockovichdatacenter.com/
>The Data-Center Boom Is Sparking a Third Wave of Inflation - https://news.ycombinator.com/item?id=48677039 - June 2026
The article says
>Goldman Sachs economists forecast that data centers will account for nearly half of U.S. growth in power demand through 2030. As a result, they saw consumer electricity prices rising about 6% annually this year and next.
but it also cautions
>Even electricity accounts for only about 2.5% of consumer spending, according to the Labor Department.
Electricity has gotten more expensive, it's only growing twice as fast. It's also unclear how much of that it's due to AI, as goldman sacs claims. For instance, if you look at the BLS figures for electricity prices, it shows a huge jump in 2021-2022, well before the datacenter boom started. Others have mentioned rates are going up due to modernization efforts and/or the switch to renewables.
https://fred.stlouisfed.org/series/CUSR0000SEHF01
Thank you this. Super helpful. There were so many articles and most of them did not mention price I skipped through it aggressively.
I wish there was more science driven reports based on what’s really happening. So much of it seems to be spun into people’s emotions that’s it’s hard to make sense of it. The public energy companies like to blame data centers but then data in certain geographies suggest otherwise. There was a good semi analysis months ago on how pricing I believe in New England was less about data centers and more on how inefficient the forward auction was constructed for prices there.
I only skimmed because what I saw was either no evidence or low. They to touched on demand but not immediately the correlation to price which is hard to connect without supply and other mechanics that go into different electric grid geographies. This feels very similar to the water argument or the anti-solar farm crowd. Lots of emotions and not as many facts. I am going to lean on the original research link.
No worries, voters are engaged so I am not concerned. Data centers are a third rail in politics at the moment. I encourage politicians and lobbyists to voice their support so we know who they are, as elections have consequences.
‘Cost Me the Election’: Data Centers Trigger Voter Backlash - https://www.newsweek.com/cost-me-the-election-data-centers-t... - June 25th, 2026
Utah Senate President Loses Primary After Data Center Backlash - https://www.nytimes.com/2026/06/24/us/j-stuart-adams-utah-se... | https://archive.ph/MMot6 - June 24th, 2026
Where Republicans and Democrats stand on AI data centers - https://www.ipsos.com/en-us/where-republicans-and-democrats-... - June 12th, 2026
Americans Oppose AI Data Centers in Their Area - https://news.ycombinator.com/item?id=48183512 - May 2026
Why would anyone be worried? I was asking for actual science behind your claims. If you cannot it’s ok, just cements my thinking similar to the water claims people like to make. It’s the modern hysteria.
My mental model of HN is there is a subset of forum participants who either don't believe the impact data centers are causing, or simply don't care. I’m not here to change hearts or minds (mental models are rigid, humans are emotion vs data driven); only to share data, and consume data.
I believe the data shows data centers to have an outsized impact on the costs discussed. Others may disagree, but the facts are the facts, especially if we're asking schools to conserve power while serving data center loads (per this post and related thread). That is not a fact in support of "data center power consumption is not of material concern, and does not require potential regulatory intervention." Quote the opposite (again, imho). If data centers do not have enough power, the solution is simple; force them to load shed and operate dynamically based on the remaining power available to them until more power is brought online.
Again, show one critical research paper that draws a solid link towards data centers and price increases. You linked to so many articles, many of which just spoke on demand increases. I absolutely believe that in some grids, data centers have driven some of the increase but you claiming that data centers are the only problem reads like those folks scared of solar farms being built.
Just because you want to believe it does not make it true. You are claiming it’s 100% the reason and I am suggesting it’s probably part of it but unclear if it’s 5% or 90%.
So far, the data are clear--data centers are not increasing electricity rates. Those are the facts. https://www.instituteforenergyresearch.org/the-grid/the-numb... This may change in the future, but so far, there is no statistically significant correlation.
Not only that, but states with increasing electricity consumption have lower rates. So it's possible data center will lead to lower rates.
https://en.wikipedia.org/wiki/Institute_for_Energy_Research
> IER is a member of the advisory board of Project 2025, a collection of conservative and right-wing policy proposals from the Heritage Foundation to reshape the United States federal government and consolidate executive power should the Republican nominee win the 2024 presidential election. The Institute's CEO and founder, Robert L. Bradley Jr., is a senior fellow at the American Institute for Economic Research and Energy & Climate Change Fellow at the Institute of Economic Affairs in London. He has written eight books, including Energy: The Master Resource; Climate Alarmism Reconsidered; and Edison to Enron.
https://mediabiasfactcheck.com/institute-for-energy-research...
> Overall, we rate the Institute for Energy Research as Right Biased due to its strong advocacy for fossil fuel expansion and deregulation, aligning with free-market conservative energy policies. We rate its reporting as Mixed for factual accuracy, as it does not always align with the consensus of science by selectively presenting data that favors fossil fuels while downplaying or omitting information on climate change and renewable energy viability. IER is a nonprofit organization that does not fully disclose its funding sources. However, past reports indicate financial ties to fossil fuel interests, including donations from ExxonMobil and groups associated with Charles Koch—a key funder of climate-skeptical and free-market advocacy. While the institute claims to support “energy freedom,” its funding sources suggest a strong alignment with the fossil fuel industry.
(I've forwarded your IER citation to a data science practitioner in the energy space to decompose, more to come)
Brookings: Confronting and addressing rising energy bills linked to data centers - https://www.brookings.edu/articles/confronting-and-addressin... - March 13th, 2026
Data Center Power Demands Are Contributing to Higher Energy Bills - https://www.eesi.org/articles/view/data-center-power-demands... - February 26th, 2026 ("As data centers expand nationwide, utilities are receiving hundreds of gigawatts in interconnection requests, with implications for the power grid and consumers. Dozens of utilities received data center requests for at least 700 gigawatts (GW) of power connection development in 2025, which is more than the 477 GW in electricity that the United States consumed in all of 2023. Even though many of these projects will never be built, the requests are still leading to a ramp-up in energy infrastructure investments, including generation facilities, transmission lines, and transformers.")
No more PJM data centers unless they can be reliably served: market monitor - https://www.utilitydive.com/news/pjm-data-center-interconnec... - November 26th, 2025 ("The PJM Interconnection’s market monitor urged the Federal Energy Regulatory Commission to rule that large data centers can only come online if the grid operator can still meet reliability metrics.")
FERC Complaint: https://elibrary.ferc.gov/eLibrary/filelist?accession_number... ("20251125-5275_2025-11-25 IMM Complaint re Data Center Loads-AS FILED-1.pdf")
Brannon, Ike and Wolf, Samuel, The Impact of Data Centers on Energy Demand and Market Prices (November 11, 2024). Available at SSRN: https://ssrn.com/abstract=5017484 or https://doi.org/10.2139/ssrn.5017484
> The number of data centers in the U.S. has increased sharply in the last decade and nearly all forecasts suggest that their growth will accelerate in the next decade, mainly driven by the rapid adoption of AI. Since data centers are extremely energy intensive, they have led to significant increases in energy consumption. After two decades of relatively static demand, demand for energy in the U.S. is accelerating rapidly, and demand growth is driven in large part by data centers.
> Data centers have had a particularly strong impact on Northern Virginia: More than half of all the nation's energy consumption attributed to data centers occurs in the state-mostly in Northern Virginia, where the needs of the federal government and national security agencies are important drivers of demand.
> Capacity market prices in the last auction nearly doubled across the PJM region and by more than 14 times in Virginia, signaling an urgent need to secure new transmission and generation to ensure reliability for consumers. Billions of dollars of new investment in generation and transmission capacity will be needed to restore a healthy reserve margin and to recover the portion of reserve capacity that has been consumed by data centers.
> We estimate that failing to make such investments in a timely manner would force regulators to acquiesce to rate increases of as much as 70 percent in the next decade in order to ensure that the grid functions properly and provides energy to all users. The consequences of such a failure could be the appearance of regular brownouts and blackouts in Northern Virginia and across the country.
(If you want to talk to someone at Brookings, FERC, UtilityDive, or another domain specific firm to confirm, let me know and I will connect you to them)
Those read more like policy pieces. Correlations but not strong causation.
Brookings misses out on of the key failures in PJM which is how those terrible 3 year forecasts are causing issues with rates.
Again interesting from a policy perspective but they don’t reach your claim of data centers being the entire problem for retail energy rates.
Please tell me the mental model you have that you believe you can plug a 1GW load into an existing power network and not increase prices?
Do you think that distribution infrastructure required would be free? Do you think markets respond to new demand with new supply instantly?
The market incentive to increase generation is higher prices.
Data center investments, in terms of the energy they will require, far outstrip generation planning and buildout, and by a huge margin.
When you have a demand/supply equilibrium, and you drastically increase demand, what happens to the price?
I am not suggesting that data centers or any load growth for that matter have no impact on prices but rather challenging the idea than data centers are the primary/only reason certain regions have had price increases. Most of the shared links focus on PJM which imo has a flawed auction model that requires 3 year forecasts that nobody would expect to get correct. But it makes for sensational journalism because you can show pictures of data centers up against homes.
I have yet to see any strong research showing a correlation to data center growth and price increases. If you have any beyond a gut feeling I would love to read!