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Tech Giants' Energy Bills Hit Consumers' Wallets
17 Dec
Summary
- US senators probe if tech firms pass data center costs to consumers.
- Data centers could account for 12% of US power consumption by 2028.
- Some studies question the link between data centers and rising electricity prices.
US senators Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal are scrutinizing major tech companies over the escalating energy expenses of their data centers. They are investigating whether these costs are being unfairly transferred to American households through increased utility bills. The lawmakers have formally requested greater transparency and accountability from tech giants like Google, Amazon, Microsoft, and Meta.
These concerns arise as data centers' energy demands are projected to reach 12% of the national power consumption by 2028. Some regions with substantial data center activity have already seen residential electricity costs surge dramatically. The senators argue that trillion-dollar tech corporations should bear a more significant portion of these energy expenses, rather than burdening consumers.
However, the link between data center expansion and rising electricity prices is not definitively established, with some studies suggesting otherwise. Lawmakers are also examining tax incentives and lobbying practices associated with data center development. Beyond financial impacts, the substantial energy and water consumption of data centers also raises significant environmental concerns, including carbon emissions.
