Tesla's new AI data center in Palo Alto demands significantly more electricity than traditional facilities, prompting changes in local infrastructure and impacting residents' utility costs.
The substation upgrade costs an estimated $24 million, with Palo Alto and Tesla sharing expenses. Residents have reported increased utility bills as a result.
Tesla has secured a reservation of 9,000 kilowatts of electricity demand specifically for its AI project, showcasing an unusual collaboration between the city and the corporation.
This partnership highlights the broader implications of AI on public infrastructure, where utilities and companies are grappling with the complexities of rising electricity needs.
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