What's Happening?
Maryland state Senator Katie Fry Hester, along with a bipartisan group of lawmakers, is advocating for tech companies like Amazon, Google, and Microsoft to cover the costs associated with their increased
electricity usage due to data centers. This comes as PJM Interconnection, which manages power for 67 million people across 13 states, is set to decide whether these costs will be passed on to consumers. The decision is part of PJM's Critical Issue Fast Path process, which aims to address the expected 32 gigawatts of new electricity demand from data centers by 2030. Governor Wes Moore has criticized PJM's processes, highlighting the significant impact of rising energy costs on low- and moderate-income families.
Why It's Important?
The decision by PJM Interconnection could have significant financial implications for consumers in the Northeast and Mid-Atlantic regions. If tech companies are not held accountable for the increased energy demand, consumers may face higher electricity bills. This issue highlights the broader challenge of balancing the growth of data centers, which are crucial for supporting internet use and AI, with the need to protect consumers from rising costs. The outcome could set a precedent for how energy costs are managed in the face of growing technological infrastructure demands.
What's Next?
PJM's board is expected to finalize its proposal by November 19 and submit it to the Federal Energy Regulatory Commission. The decision will determine whether tech companies or consumers will bear the costs of increased electricity demand. Lawmakers and consumer advocates are likely to continue pushing for solutions that protect consumers, while tech companies may lobby for favorable outcomes. The outcome will be closely watched by stakeholders across the region.
