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Data centers · Power bills2 min read

Whether a data center raises your power bill depends on where you live

Many Americans oppose nearby data centers over fears of higher power bills, but Fast Company reports the real effect depends on the local grid and the deal.

By the Dashline deskSource: Fast Company
Whether a data center raises your power bill depends on where you live
Photo: Fast Company

Will a new data center make your electric bill go up? It depends. Fast Company reports that whether bills rise, and by how much, turns on the local power grid and the terms of the deal behind the project. The answer in one town may not match the answer in another.

What the report says

Worry about higher utility bills is one of the biggest reasons most Americans don't want a data center built nearby. A data center is a large building full of computers that store data and run online services. Fast Company says the results have at times been counterintuitive. In other words, a new data center does not always lead to a simple rise in bills.

Why location and terms matter

Two things shape the outcome, according to the report. The first is the local power grid, meaning the system of power plants and lines that serves your area. The second is the terms of the deal, which helps decide who pays for the extra power a data center needs.

What is not known yet

The full article was not available, so the details are thin. The material does not say which places saw bills rise, which saw them hold steady, or what the counterintuitive results were. It also gives no figures on how large any change has been.

What to do

If a data center is proposed near you, ask how the deal is structured. That question helps show who covers the cost of the extra power, and whether the bill impact is likely to land on local households.

The takeaway

If a data center is proposed near you, ask how the deal is structured, since that helps decide who pays for the extra power.

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