A Harvard report reveals that secret electricity contracts between utilities and data centers, especially those serving Big Tech, may lead to significantly higher costs for consumers. Analyzing 40 such contracts, researchers found that while data centers receive discounts, the costs might be shifted to regular customers who could face higher utility bills. The contracts often remain confidential, making it difficult for the public to understand the implications. With data centers expected to consume 12% of U.S. electricity by 2028, the report urges closer examination of these agreements to protect consumers.
When we have potentially billions of dollars going through these secret contracts where there's just not a lot of investigation about what's going on, we think there's reason to be suspicious that utilities may be offering discounts that are subsidized by everybody else.
The report lands as data center construction is booming, in part to serve Big Tech's artificial intelligence race. Some AI data center complexes need as much power as entire cities.
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