As the demand for artificial intelligence surges, the strain on the energy grid is intensifying. Three Democratic senators are questioning major tech companies about whether their power-hungry data centers are contributing to higher electricity costs for everyday Americans.
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Senators Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal raised concerns that utility companies are passing on billions in infrastructure upgrade expenses to consumers as tech giants, including Google, Microsoft, Amazon, and Meta, ramp up their AI operations.
The investigation targets seven companies, including data center specialists CoreWeave, Digital Realty, and Equinix. The senators highlighted regions with significant data center activities that have seen electricity prices surge by as much as 267% over five years, whereas national household electricity costs have risen.ed by 13% just this year.
Data centers currently use more than 4% of the electricity in the United States, with expectations that this will increase to 12% by 2028, according to the Department of Energy. This increase is largely due to AI systems, which demand significantly more computing power compared to conventional internet services.
A single data center can consume enough electricity to power hundreds of thousands of homes, forcing utilities to build new power plants and transmission lines.
The legislators are demanding clarity on multiple aspects: the present and anticipated number of data centers by companies, their energy consumption trends, measures implemented to avoid passing costs onto consumers, and information regarding tax incentives and lobbying expenses associated with data center development.
Tech companies are under scrutiny for the gap between their public commitments and actions. Despite claims of paying their fair share, they’ve opposed state and local regulations, and most utility contracts remain confidential, leaving consumers in the dark about rising bills. Amazon defended itself, saying it covers its own electricity costs, while Digital Realty expressed willingness to work with officials. Microsoft and Meta declined to comment, and Google and the data center operators didn't respond.