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Monday, December 02, 2024

Study: AI and Data Centers Could Drive Cost of Energy Up by 70 Percent over 10 Years

The average American’s energy bill could increase from 25% to 70% in the next 10 years without intervention from policymakers, according to a new study from Washington, D.C.-based think tank the Jack Kemp Foundation.

According to reports, America is facing an energy crisis, with demand for energy soaring due to the proliferation of AI and hyperscale data centers, which can use as much energy as almost 40,000 homes;  the boom in advanced manufacturing, and the movement toward electrification.
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5 comments:

  1. I am struggling to understand why ANY of the cost for data centers and/or AI should be passed on to regular consumers. If a company wants to collect and amass information, they should bear the entire cost. Same with any company using AI for any reason.
    Ed

    ReplyDelete
    Replies
    1. all costs of production are passed on to the consumer, thats the nature of business. Just like when politicians talk about taxing business, the consumer pays it.

      Delete
    2. The Costs are not being passed to regular customers, the price is just going to go up because the demand (from the Data Centers usage) is going up and the supply is not.

      Delete
  2. I'd like to have a reasonable estimate of the productivity gains resulting from this energy cost. Something NOT from a DC stink tank.

    ReplyDelete
  3. AI and data centers make a convenient scapegoat for the coming increases in electricity costs. The problem is the electric industry's attempt to switch to all renewable which will raise cost by 2x.

    ReplyDelete

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