Are consumers doomed to pay more for electricity due to data center buildouts?

"Nearly three-quarters of planned generation equipment for data centers is natural gas fired, according to energy research firm Cleanview, which is tracking 56 GW of projects across the US. Wednesday's pledge would see tech companies expand these efforts to prevent higher power costs being pushed on to customer bills."

"Competition for gas turbines is fierce, with waits as long as seven years for new orders. Turbine-maker GE Vernova said it would expand production by 25 percent, and Mitsubishi Power announced plans to double its output over the next two years. But manufacturers have been cautious about expanding capacity, and it may not be enough to meet booming demand."

"The price of gas turbines has risen sharply, and greater competition from tech companies will mean higher costs for utilities and industrial customers who also need generating capacity-costs that could still be passed on to ratepayers. To overcome shortages, data centers are increasingly relying on alternatives."

Tech companies are constructing independent power generation facilities for data centers to circumvent lengthy grid connection waits and regulatory scrutiny. Nearly three-quarters of planned data center generation equipment relies on natural gas. This expansion aims to prevent increased power costs from affecting customer bills. However, the surge in data center construction is straining the power generation supply chain. Gas turbine manufacturers face seven-year wait times for new orders, and despite GE Vernova's 25% production increase and Mitsubishi Power's plans to double output, capacity may remain insufficient. Two-thirds of gas projects lack announced turbine manufacturers. Rising turbine prices will increase costs for utilities and industrial customers. Companies are exploring alternatives including nuclear power plant reopenings and reciprocal engines, though nuclear solutions require years to implement.

Read at Ars Technica