Data centers’ utility consumption leads to higher bills for consumers

There is growing concern over how much energy and water big tech data centers are using, and that it could lead to higher bills for consumers.

Data centers are a booming business for states, bringing jobs, but they also consume a significant amount of electricity and water. Nationally, the average electricity rate for residents has risen more than 30 percent since 2020, after years of relatively modest increases. Much of that increase has been driven by utilities’ efforts to catch up on deferred maintenance and harden their grids against extreme weather.

But recent reports expect data centers will require expensive upgrades to the electric grid, a cost that will be shared with residents and smaller businesses through higher rates unless state regulators and lawmakers force tech companies to cover those expenses.

Joanna Allhands, Reporter at The Arizona Republic and azcentral.com, joined “Arizona Horizon” to discuss more on these recent reports and whether or not they are affecting consumers.