Senate trio questions DC operators over rising energy costs

"Because the massive scale of AI datacenters requires more power than most grids can supply, the Senators explain in their letters, utility companies have to build out their grids to the tune of billions of dollars. The electrical grid in many regions was not designed to accommodate the hundreds of megawatts, and in some cases approaching a gigawatt, that large modern datacenters are projected to draw, meaning utilities in areas targeted for new facilities often have to invest in new generation, transmission,"

""Tech companies have paid lip service in support of covering their data centers' energy costs, but their actions have shown the opposite," the trio wrote. They cite a number of studies and reports that conclude US electricity prices are most definitely rising, with much of the increase driven, unsurprisingly, by datacenters. "When utilities expand their grid infrastructure, they incorporate the cost of expansion into their utility rates, passing the extra costs onto their customers," the Senators wrote."

"Concerned over continually rising energy costs linked to AI datacenter construction projects, three Democratic Senators are asking leading bit barn operators to explain why their promises of not passing grid expansion costs onto consumers are falling short. Senators Elizabeth Warren (D-MA), Chris Van Hollen (D-MD), and Richard Blumenthal (D-CT) sent letters to Google, Microsoft, Amazon, Meta, CoreWeave, Digital Realty, and Equinix on Monday, demanding answers on their contributions to rising utility rates, which the lawmakers blame firmly on the explosion of datacenter construction projects."

Senators Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal sent letters to Google, Microsoft, Amazon, Meta, CoreWeave, Digital Realty, and Equinix requesting explanations for rising utility rates tied to datacenter construction. The senators explain that AI datacenters demand hundreds of megawatts to nearly a gigawatt of power, forcing utilities into multi‑billion‑dollar generation, transmission, and local grid buildouts. Utilities incorporate expansion costs into customer rates, raising electricity prices. Multiple studies cited link datacenter growth to rising U.S. electricity prices. Promises by datacenter operators to cover associated grid expansion expenses have repeatedly failed to materialize, according to the senators and cited research.

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