Crackdown on Power-Guzzling Data Centers May Soon Come Online in California

Source: CalMatters |  By Khari Johnson

California residents now pay the highest price for electricity in the continental U.S., state analysts reported last month. Costs have been driven in part by levies to prevent and insure against wildfires, but the analysts anticipate a less conspicuous source of pressure on power bills going forward: growing electricity demand from data centers. That means more power plants to build and more transmission lines to run, leaving state regulators increasingly concerned that the general public will be on the hook for Big Tech’s electricity binge.

But, so far, data center expansion shows no signs of slowing in California, said Sylvie Ashford, an energy and policy analyst at The Utility Reform Network. Ashford said the need to run transmission lines to data centers could hike prices for California ratepayers, one in five of whom are already behind on paying their electricity bill. “Regulators need to shield residential and small business customers from shouldering the brunt of these new data center costs,” Ashford said. “California needs to be proactive and develop equitable solutions for cost recovery and electric rate design, so that data centers are paying their fair share for system improvements.”