Data Centers Might Not Pay Their Fair Share. Might Not!
July 17, 2026
There are many complaints about data centers, including that they consume too many resources: electricity and water. Communities are concerned that essential resources will be depleted in pursuit of AI. The Conversation investigated data centers and if, “It May Be Almost Impossible To Make Data Centers Pay Their ‘Fair Share’ Of Electricity Costs.” No one is sure how data centers costs will be calculated and what the long term effects will be. PJM Market estimated the amount of power data centers will use and concluded that demand will cost consumers $23 billion that will last until 2028.
How are prices for energy determined?
“First, regulators identify the costs that a utility company incurs to provide service. Regulators look at the value of the assets the utility company invests in, such as power plants, transmission lines and substations, as well as its day-to-day operating expenses, such as salaries, fuel, replacement parts and electricity it purchases from other sources. Then these costs are allocated to categories of customers, such as residential, commercial and industrial.”
It is ideal that consumers pay for the amount of energy they use. There are other costs that go into estimating cost such as securing additional electricity sources, substation upgrades, etc. In these cases, the costs are usually shared among consumers. Peak demand, when consumers draw the largest amount of energy from the grid, is another collective way to estimate costs.
Data centers are different. Using computers they can adjust how much energy they use from one moment to the next. Consumers can’t do that. It means that…
“Their flexibility means data centers may be able to learn to predict when system loads will peak and consume little to no power in just the right period to avoid contributing to peak loads, as has happened with cryptocurrency-mining operations in Texas. So when regulators look at their usage to determine prices, data centers may be able to avoid paying any costs allocated through coincident peak demand, even if they use large amounts of electricity at other times.”
Consumers need to be aware about the risks associated with data centers and advocate for themselves. If they don’t, they could be left paying the bill for data centers.
Whitney Grace, July 17, 2026
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