Who Pays the Price for AI's Power Play?

The Rising Demand

AI is making big waves, and not just in tech. It's shaking up the power grid, and that's a problem for everyone. The recent green light for a massive data center in Cumberland County is just the start.

This isn't just about having enough electricity. It's about who foots the bill when things don't go as planned.

The Changing Landscape

For years, electricity use in the U. S. stayed pretty much the same. But now, data centers are changing that. They could use up a huge chunk of new electricity demand in the next few years.

The issue isn't just how much power they use. It's about how fast they need it and where they pop up.

The Pressure on Utilities

Utilities and regulators are under pressure to spend big on new power plants and grid upgrades. But what if they guess wrong?

• If they build too much, customers pay higher bills.
• If they build too little, the lights might flicker.

Either way, the public takes the hit.

The Core Problem

The problem isn't the technology. It's how we manage it.

• The U. S. has enough power overall, but local grids can get strained.
• A single data center can suck up as much power as a small town.
• When a few of these giants cluster together, the grid feels the squeeze.

The Risk to Ratepayers

Right now, the risk mostly falls on ratepayers.

• Utilities can earn money by building ahead of demand.
• But if that demand doesn't materialize, customers still pay.

AI is getting more efficient, but that doesn't erase the uncertainty. Infrastructure decisions are made years in advance, while AI's future is anyone's guess.

The Critical Question

The real question is: Should the public bear the risk of AI's growth?

Policymakers need to make sure that the benefits and risks are fairly shared. They should phase in commitments and reward flexibility.

AI isn't breaking the grid, but it's testing our ability to manage rapid change without leaving the public in the dark.