Get it right
Data Centers are not the cause of higher electric bills.
There is no serious energy crisis. Feds actively solving.
Renewables + storage same price or cheaper than gas and almost always the right choice.
Electric supply increasing faster than demand almost everywhere. Not a limit on AI.
AI Energy solved
FERC Demands More
Flexibility, Storage
Electric Rates up after $50B Windfall for generators. They Blame Data Centers. Wrong
From 2023-2025, PJM’s 67 million customers paid $2.2B per year for reserve capacity. From 2025-2029, they are being charged $15B per year. Now, the companies hope to lock in ~$20B/year for 15 more years,…
What’s going on
Rates did go up $50B in 3 years on East Coast USA PJM as generator giants raised capacity charges ten times. Blamed data centers but the proximate cause is an obsolete auction system. FERC issued Show Cause Order to add flexible connections and storage in grid system. Fully implemented, more than enough to fix “crisis.” Georgia rates already falling. California has excess capacity.
Falling prices for renewables + storage now the same or less in most locations. New economics inspire so much new supply that prices are going down in much of the world. PJM urged to delay auction that would lock in extraordinary rates for 15 years.
Much more coming.
OpenAI Gigawatt of flexible power credited for consumer rate decrease
Data Centers can and should bring down consumer prices Georgia Power customers’ bills will go down $15/month by 2029, the company promises. (Below.) OpenAI will switch up to a gigawatt of demand to batteries or backup generators when requested. That flexibility makes…
The grid was never designed for a customer that never sleeps.
Transmission planner — replace per storydata centers only a few % of Electric Demand
Not enough to cause a crisis. Supply growing faster than demand because of surge in solar article to come
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Backgrounders
Explainers and data on the issues behind the reporting.
Sources
Filings, reports and datasets the reporting rests on.