- Some states could see 57% price increases in energy bills – Virginia and Texas were hit the hardest
- Digital infrastructure could account for a fifth of energy demand in 2030
- This study points to a serious lack of wind and sun
New research by Jeremiah X Johnson et al., published in Environmental Research Letters, has revealed that in some of the most extreme regional cases, wholesale electricity costs could increase by up to 57% by the end of the decade in some US states.
Based on historical trends and growth scenarios, the projection reveals that Virginia and Texas could be the hardest hit due to a combination of intense data center development and limited renewable energy resources.
Nationally, the U.S. could face energy price increases of between 6% and 29%, the paper claims, which would mark an unwelcome change from the stable energy prices citizens have experienced over the past decade or so.
Data centers can push some states’ energy bills up 57%, US up 29%
While data centers are largely to blame for sharp increases in energy demand, the paper’s authors criticize America’s current reliance on legacy fossil fuel infrastructure, which can be prone to variable costs.
The ongoing conflict in the Middle East is proof of that, with citizens already facing higher gas prices at the pump.
The study, which runs a variety of models and highlights its influence from global fluctuations, reveals that digital director could account for as much as 20% of US energy needs by 2030.
As much as 90% of the country’s energy will come from natural gas (64% to 76%) and coal (12% to 14%) to meet the demand for data center infrastructure, highlighting a severe shortage and underinvestment in renewable sources such as solar, wind and hydro. Conversely, wind only accounts for 7% to 12% and sun 5% to 12%.
Aside from costs, the researchers also warn that intensive use of fossil fuels could push the total CO2 emissions of the US electricity sector up by 28%.
It is widely recognized that data centers are better located in certain regions than others due to environmental and infrastructural factors, such as availability of grid connections and cooling limitations, but the researchers suggest that an even distribution of campuses across the country could go a long way to eliminating regional price spikes – at the cost of higher overall emissions.
“Together, these findings point to the importance of robust policy frameworks and diversified energy portfolios in managing the risks of rapid demand growth,” the paper concludes.
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