Latest news with #NationalEnergyAssistanceDirectorsAssociation
Entrepreneur
5 days ago
- Business
- Entrepreneur
Electric Bill Prices Rising, Are AI Data Centers to Blame?
Is your electric bill higher than normal? Sure, it's summer in the U.S., and a higher bill due to air conditioning costs can be expected. In fact, CBS reports that electricity prices have risen 4.5% in the last year, according to recent data from the Labor Department. But what about a higher bill due to AI? It's happening to electric customers across the country, even if they've never asked a chatbot a question. Related: Saying 'Please' and 'Thank You' to ChatGPT Costs OpenAI 'Tens of Millions of Dollars' Customers in New Jersey, for example, are fuming over the news that their electric bills could surge up to 20% this summer due to data centers, per a new report in the local Patch outlet. But the entire U.S. could soon be affected. Floodlight reports that the way electric companies currently set rates won't work with the unprecedented demand Big Tech has with AI, and highlights a report from Harvard's Electricity Law Initiative that said, unless the current system changes, U.S. consumers will be the ones who pay "billions of dollars" for it. Mark Wolfe, executive director of the National Energy Assistance Directors Association, told CBS MoneyWatch the same — that the American taxpayers will be the ones footing the bill — not the AI companies. "As utilities race to meet skyrocketing demand from AI and cloud computing, they're building new infrastructure and raising rates, often without transparency or public input," Wolfe said. "That means higher electricity bills for everyday households, while tech companies benefit from sweetheart deals behind closed doors." Related: Excess Energy from AI Servers Is Heating the Pool at the 2024 Olympic Games — Here's How Digital automation company, Schneider Electric, found that electricity demand will increase at least 16% in the U.S. by 2029 due to data centers. This is only expected to grow as the number of data centers also grows (it already doubled in the U.S. between 2021 and 2024, per a report from Environment America). And the number is increasing with generative AI and other technological advances. Meanwhile, the rise in electricity needs could result in "lower system stability," according to a recent report by the North American Electric Reliability Corp., and a grid operator in 13 states and Washington, D.C., PJM, said data center demand could lead to "capacity shortages" in its 2025 forecast.
Yahoo
5 days ago
- Business
- Yahoo
The AI revolution is likely to drive up your electricity bill. Here's why.
New Jersey residents got some bad news earlier this year when the state's public utilities board warned that their electricity bills could surge up to 20% starting on June 1. A key driver in that rate hike: data centers. The spread of these large-scale computing facilities across the U.S. amid growing demand for artificial intelligence, data storage and other technology services is projected to increase electricity consumption to record highs in the coming years, according to experts. A report from Schneider Electric, a company that specializes in digital automation and energy management, projects that electricity demand will increase 16% by 2029, mainly due to the proliferation of data centers. Most data centers rely on the nation's electrical grid for energy, meaning it will be Americans ratepayers who pick up the tab, Mark Wolfe, executive director of the National Energy Assistance Directors Association, a group that represents states on energy issues. "As utilities race to meet skyrocketing demand from AI and cloud computing, they're building new infrastructure and raising rates, often without transparency or public input," he told CBS MoneyWatch in an email. "That means higher electricity bills for everyday households, while tech companies benefit from sweetheart deals behind closed doors." More data centers, more power Thousands of data centers now dot the country, with the largest concentrations in Virginia, California and Texas. The number of data centers in the U.S. nearly doubled between 2021 and 2024, according to a report from Environment America, a network of environmental groups. It's not just the number of data centers that are expected to rise, but the size. "The trend has been bigger data centers," Dave Turk, the former deputy secretary of the U.S. Department of Energy, told CBS MoneyWatch. "They tend to be more energy efficient." Spurring that expansion is the rapid growth of "generative" AI companies that are consuming vast amounts of electricity to train so-called Large Language Models like ChatGPT and power. AI searches use 10 times more electricity than normal internet searches, according to a study from the Electric Power Research Institute, a nonprofit organization. "AI is an increasing part of data centers and certainly responsible for increased electricity demand," Turk said. Data centers, which contain thousands of computer servers, networking gear and other infrastructure, also require power to cool their systems and keep them from overheating. Torsten Sløk, chief economist at asset management firm Apollo Global Management, estimates that data centers will require an additional 18 gigawatts of power capacity by 2030. To put that into context, New York City power demand is about 6 gigawatts. About 4.4% of U.S. electricity went to power data centers in 2023, according to a Department of Energy's Lawrence Berkeley National Laboratory study. Not all of that demand is related to AI, but it represents a portion, Turk said. Other factors pushing up prices The spread of data centers isn't the only reason U.S. electricity prices are surging. The price of natural gas, inflation, ongoing electrification of buildings and vehicles, and other factors also play an important role. But utilities are factoring the high demand from data centers into their pricing models. For example, when Dominion Energy, one of the Virginia's largest utilities, in April proposed a price hike of $8.51 per month in 2026, the company also floated the idea of a "new rate class for high energy users, including data centers." Electricity prices have risen 4.5% in the last year, according to recent data from the Labor Department, and are estimated to surge this summer. Energy costs also drift higher if a Republican-backed budget package, dubbed the "big beautiful bill," is passed and signed into law by President Trump. Analysts from Rhodium Group predict that the bill, which would repeal a slate of tax credits created under the Inflation Reduction Act, could increase a family's energy expenditures by nearly $400 a year. Beyond price increases, the heightened energy demand from data centers could also compromise the reliability of the grid, according to experts. In a recent report, the North American Electric Reliability Corp said that facilities that service AI and cryptocurrency companies are being developed at a faster pace than the power plants and transmission lines to support them, "resulting in lower system stability. PJM, a grid operator in 13 states plus Washington, D.C., cited data center demand as one of the factors that could lead to capacity shortages in its 2025 forecast. Harry Chapin: Songwriter, activist and father How the U.S. Army was born Early details on arrest in Minnesota lawmaker shootings
CBS News
6 days ago
- Business
- CBS News
The AI revolution is likely to drive up your electricity bill. Here's why.
New Jersey residents got some bad news earlier this year when the state's public utilities board warned that their electricity bills could surge up to 20% starting on June 1. A key driver in that rate hike: data centers. The spread of these large-scale computing facilities across the U.S. amid growing demand for artificial intelligence, data storage and other technology services is projected to increase electricity consumption to record highs in the coming years, according to experts. A report from Schneider Electric, a company that specializes in digital automation and energy management, projects that electricity demand will increase 16% by 2029, mainly due to the proliferation of data centers. Most data centers rely on the nation's electrical grid for energy, meaning it will be Americans ratepayers who pick up the tab, Mark Wolfe, executive director of the National Energy Assistance Directors Association, a group that represents states on energy issues. "As utilities race to meet skyrocketing demand from AI and cloud computing, they're building new infrastructure and raising rates, often without transparency or public input," he told CBS MoneyWatch in an email. "That means higher electricity bills for everyday households, while tech companies benefit from sweetheart deals behind closed doors." More data centers, more power Thousands of data centers now dot the country, with the largest concentrations in Virginia, California and Texas. The number of data centers in the U.S. nearly doubled between 2021 and 2024, according to a report from Environment America, a network of environmental groups. It's not just the number of data centers that are expected to rise, but the size. "The trend has been bigger data centers," Dave Turk, the former deputy secretary of the U.S. Department of Energy, told CBS MoneyWatch. "They tend to be more energy efficient." Spurring that expansion is the rapid growth of "generative" AI companies that are consuming vast amounts of electricity to train so-called Large Language Models like ChatGPT and power. AI searches use 10 times more electricity than normal internet searches, according to a study from the Electric Power Research Institute, a nonprofit organization. "AI is an increasing part of data centers and certainly responsible for increased electricity demand," Turk said. Data centers, which contain thousands of computer servers, networking gear and other infrastructure, also require power to cool their systems and keep them from overheating. Torsten Sløk, chief economist at asset management firm Apollo Global Management, estimates that data centers will require an additional 18 gigawatts of power capacity by 2030. To put that into context, New York City power demand is about 6 gigawatts. About 4.4% of U.S. electricity went to power data centers in 2023, according to a Department of Energy's Lawrence Berkeley National Laboratory study. Not all of that demand is related to AI, but it represents a portion, Turk said. Other factors pushing up prices The spread of data centers isn't the only reason U.S. electricity prices are surging. The price of natural gas, inflation, ongoing electrification of buildings and vehicles, and other factors also play an important role. But utilities are factoring the high demand from data centers into their pricing models. For example, when Dominion Energy, one of the Virginia's largest utilities, in April proposed a price hike of $8.51 per month in 2026, the company also floated the idea of a "new rate class for high energy users, including data centers." Electricity prices have risen 4.5% in the last year, according to recent data from the Labor Department, and are estimated to surge this summer. Energy costs also drift higher if a Republican-backed budget package, dubbed the "big beautiful bill," is passed and signed into law by President Trump. Analysts from Rhodium Group predict that the bill, which would repeal a slate of tax credits created under the Inflation Reduction Act, could increase a family's energy expenditures by nearly $400 a year. Beyond price increases, the heightened energy demand from data centers could also compromise the reliability of the grid, according to experts. In a recent report, the North American Electric Reliability Corp said that facilities that service AI and cryptocurrency companies are being developed at a faster pace than the power plants and transmission lines to support them, "resulting in lower system stability. PJM, a grid operator in 13 states plus Washington, D.C., cited data center demand as one of the factors that could lead to capacity shortages in its 2025 forecast.
Business Mayor
26-05-2025
- Business
- Business Mayor
Cruel Summer: AC costs expected to skyrocket to 12-year high across the US
The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US The cost of using air conditioning across the nation is expected to hit its highest level in 12 years this summer. It may even reach a record high, according to energy industry experts. Skyrocketing prices come amid increasing demand due to higher temperatures and more oppressive humidity spurred by human-caused climate change. That demand is only projected to surge as Earth's atmosphere continues to heat up, thanks to the continued production of fossil fuels and other sources of polluting greenhouse gas emissions. 'We have found that consumers are going to be hit with the highest level in 12 years, possibly a record high for home cooling this summer, as the average cost of electricity is projected to reach $784, a 6.2 percent increase from $737 last year,' National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty and Climate (CEPC) said in a joint statement. 'After adjusting for inflation, the average family will see an increase of 4.2 percent.' The number of cooling degree days, when air conditioners might be necessary, has increased in hundreds of locations over the past 50 years, and heat and energy stress has resulted in days-long power outages with deadly consequences. The highest average costs are anticipated in the Northeast, South Central, and South Atlantic regions of the U.S. It is forecast to be a particularly hot summer for the majority of the country, including much of the West, Florida, and the Northeast. It's going to be another sweltering summer across much of the U.S. Now, energy experts are predicting cooling costs will reach the highest level in 12 years — and possibly a new record (Getty Images) The groups cited two reasons for rising prices. First, that the cost of electricity is rising faster than average inflation. Second, that summer temperatures are continuing to result in severe and prolonged heat waves. It's a burden, they warned, that falls disproportionately on low-income families. Nearly 20 percent of low-income families have no air conditioning. 'The average energy burden for low-income households is about 8.6 percent of income, almost three times the rate for non-low-income households (3.0 percent),' the organizations said, noting that a recent survey had found the percentage of household that could not pay their energy bill for at least one month in the last year has increased, up from 21.4 percent to 25.3 percent. While the official poverty rate fell in 2023, the Census Bureau says there were still 36.8 million people living in poverty that year. The burden, the report said, falls to them because of a lack of access to affordable summer cooling systems, high electric bills, and cutbacks in the federal funding for the Low Income Home Energy Assistance Program. The program was reportedly included in recent Trump administration cuts to the Department of Health and Human Services. For low-income families, the upcoming months look particularly 'dire' without access to home cooling. Nearly 20 percent of low-income families have no air conditioning (Getty Images) This summer, they said only 26 states and the nation's capital will offer cooling assistance. Furthermore, just 17 states and Washington, D.C., are slated to provide some level of protection against utility companies shutting offer electricity due to unpaid bills during sweltering summer months. This leaves low-income families in 33 states without protections to exposure to dangerous health conditions, including heat stroke and even death. More than 700 people die from extreme heat every year in the U.S., according to the Centers for Disease Control and Prevention. That's more than any other weather event. Notably, those who do have access to heating and cooling systems may also be behind on energy bills from the winter months, and the amount of money consumers owe their utilities has increased from $17.5 billion in January 2023 to $24 billion in March 2025. One out of six households in the U.S. are estimated to be behind on their energy bills, NEADA said. 'Put plainly, the situation for low-income households this summer looks dire. NEADA and CEPC are concerned that this summer could be deadly for many low-income households across the United States,' they concluded.
Yahoo
26-05-2025
- Business
- Yahoo
Cruel Summer: AC costs expected to skyrocket to 12-year high across the US
The cost of using air conditioning across the nation is expected to hit its highest level in 12 years this summer. It may even reach a record high, according to energy industry experts. Skyrocketing prices come amid increasing demand due to higher temperatures and more oppressive humidity spurred by human-caused climate change. That demand is only projected to surge as Earth's atmosphere continues to heat up, thanks to the continued production of fossil fuels and other sources of polluting greenhouse gas emissions. 'We have found that consumers are going to be hit with the highest level in 12 years, possibly a record high for home cooling this summer, as the average cost of electricity is projected to reach $784, a 6.2 percent increase from $737 last year,' National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty and Climate (CEPC) said in a joint statement. 'After adjusting for inflation, the average family will see an increase of 4.2 percent.' The number of cooling degree days, when air conditioners might be necessary, has increased in hundreds of locations over the past 50 years, and heat and energy stress has resulted in days-long power outages with deadly consequences. The highest average costs are anticipated in the Northeast, South Central, and South Atlantic regions of the U.S. It is forecast to be a particularly hot summer for the majority of the country, including much of the West, Florida, and the Northeast. The groups cited two reasons for rising prices. First, that the cost of electricity is rising faster than average inflation. Second, that summer temperatures are continuing to result in severe and prolonged heat waves. It's a burden, they warned, that falls disproportionately on low-income families. Nearly 20 percent of low-income families have no air conditioning. 'The average energy burden for low-income households is about 8.6 percent of income, almost three times the rate for non-low-income households (3.0 percent),' the organizations said, noting that a recent survey had found the percentage of household that could not pay their energy bill for at least one month in the last year has increased, up from 21.4 percent to 25.3 percent. While the official poverty rate fell in 2023, the Census Bureau says there were still 36.8 million people living in poverty that year. The burden, the report said, falls to them because of a lack of access to affordable summer cooling systems, high electric bills, and cutbacks in the federal funding for the Low Income Home Energy Assistance Program. The program was reportedly included in recent Trump administration cuts to the Department of Health and Human Services. This summer, they said only 26 states and the nation's capital will offer cooling assistance. Furthermore, just 17 states and Washington, D.C., are slated to provide some level of protection against utility companies shutting offer electricity due to unpaid bills during sweltering summer months. This leaves low-income families in 33 states without protections to exposure to dangerous health conditions, including heat stroke and even death. More than 700 people die from extreme heat every year in the U.S., according to the Centers for Disease Control and Prevention. That's more than any other weather event. Notably, those who do have access to heating and cooling systems may also be behind on energy bills from the winter months, and the amount of money consumers owe their utilities has increased from $17.5 billion in January 2023 to $24 billion in March 2025. One out of six households in the U.S. are estimated to be behind on their energy bills, NEADA said. 'Put plainly, the situation for low-income households this summer looks dire. NEADA and CEPC are concerned that this summer could be deadly for many low-income households across the United States,' they concluded.
