Civics: A study finds that data centers have had only a marginal impact on residential electricity prices.
On Tuesday, Americans voted overwhelmingly against data centers and artificial intelligence growth. In 40 of 41 local ballot races around the country, many in the state of Ohio, voters opted to restrict or prohibit new data center constructions in their areas.
Much of the growing opposition to data centers has come from rising electricity prices, which are squeezing Americans in a time of already high prices and cost of living.
But, according to a new study by researchers at Harvard University and the University of Pennsylvania, data centers are probably having only a small effect on residential electricity prices. The researchers calculated that these operations were responsible for just 4 percent of the utility rate increases over the last five years.
“Even to me it was somewhat surprising,” said Serguei Netessine, professor at the Wharton School at the University of Pennsylvania and one of the study’s authors.
In the run-up to the elections, Democrats pointed to data centers — and Republican support for their development — as key drivers of electricity price increases. In one campaign ad, Democrat James Talarico, now senator-elect of Texas, said that Texans were “paying the price with skyrocketing utility bills.” Sherrod Brown, Democratic senator-elect of Ohio, similarly argued that state residents were facing higher electricity bills due to the build-out of energy-hogging data centers. Ask The Post AIDive deeper
There are certainly some areas — like in Pennsylvania, Virginia, Ohio and other states covered by grid operator PJM — where data centers have skyrocketed demand, pushing some costs onto residential customers.
