Three Democratic senators—Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal—are investigating whether major tech companies are transferring rising utility costs from “energy-guzzling” data centers to consumers. They sent letters to leaders at Google, Microsoft, Amazon, Meta, and data center operators like CoreWeave, Digital Realty, and Equinix, demanding more transparency and accountability regarding energy usage.
The senators expressed concern after reports indicated that regions with significant data center activity saw electricity prices increase by 267% over five years, while the average household electricity cost rose 7% in the past year. They argued that American households are unfairly covering the costs of tech companies’ energy consumption and requested detailed information on data centers’ energy use, financial incentives received from governments, and lobbying expenditures.
The rise of AI is contributing to energy demands, with data centers projected to consume 12% of U.S. electricity by 2028. While some studies suggest data centers may lower retail electricity prices, the senators highlighted inconsistencies in tech companies’ claims about not burdening taxpayers, noting their opposition to local regulations.
Additionally, data centers’ substantial energy consumption raises environmental concerns; a recent study indicated they could use as much water as 6 to 10 million Americans and emit carbon comparable to 5 to 10 million cars annually. Opposition to their environmental impact is increasing, leading to delayed projects worth about $64 billion, while the agreements between data centers and power companies remain largely confidential, leaving the public unaware of the reasons behind rising electricity prices.
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