That argument completely misunderstands how utility economics work in a supply crisis. Spreading fixed costs across a larger customer base only reduces rates if the utility already has excess capacity sitting idle. That is not the world we live in today.
Data centers represent a massive, sudden demand shock to the grid. Because they consume so much power, utilities are being forced to build brand new substations, high-voltage transmission lines, and expensive new generation plants just to keep the lights on.
Under standard utility regulations, the billions of dollars spent on these massive grid upgrades get passed directly down to captive residential ratepayers. We are seeing the real-world consequences of this right now. Look at Virginia, where residential consumers are being forced to foot the bill for 55 percent of an 8-billion-dollar utility expansion driven entirely by data center demand. Look at Oregon, where the legislature just had to pass an emergency law to hike data center power rates by nearly 30 percent just to shield regular homeowners from skyrocketing bills.
Trying to claim that overloading a strained electrical grid puts downward pressure on prices completely flies in the face of basic supply and demand. Regular consumers are actively subsidizing the infrastructure upgrades required by private tech monopolies, and my wife and my soaring utility bills right here in Western Washington are living proof of it.
fireman15 wrote: “Data centers represent a massive, sudden demand shock to the grid. Because they consume so much power, utilities are being forced to build brand new substations, high-voltage transmission lines, and expensive new generation plants just to keep the lights on.”
Those costs are ultimately paid by the data centers and once paid result in lowered costs for all. Besides those are necessary improvements if we want a robust grid. This is no different than the expansion of any public utility to service real growth. I do not see anyone opposing new homes because they will ultimately require construction of additional sewer systems, roads, and an expanded grid. The opposition to data centers is exactly like the Luddites opposing new factories.