Are You Connecting the dots between the explosion of data centers and your electric bill? By Julie Peller Ph.D.

Green Junction

Between 2000 and 2010, electricity consumption in the United States slowed, largely due to increased efficiency—light bulbs, appliances, etc. For example, incandescent bulbs once accounted for the most electricity use before 2000. By 2018, they had slipped to 6th place, behind heating, cooling, and appliances, due to the emergence of efficient LED light bulbs. However, since 2020, electricity prices have risen by more than 30%, driven by several factors.

One significant driver of these rising costs is the explosion of data centers, which has increased the demand for electrical output in many areas. Coupled with this, the expense of repairs and new construction related to the outdated electrical grid and the electricity distributor has contributed to higher prices. As former Secretary of Energy Bill Richardson warned, “We are producing a lot more energy from renewable sources than we were 10 years ago—yet it’s not clear our faltering grid systems are capable of transmitting it from sites far removed from the population centers.” Robinson Myer, the founding executive editor of Heatmap, adds in his recent article, “Much of America’s distribution equipment is decades old and nearing the end of its life around now. We need to upgrade and expand the transmission system.”

Building on these concerns, Myer’s analysis suggests that updates to the grid and incentives for clean electricity are critical. He stresses, “We will simply need more electricity to meet our needs. Congress must pass permitting reform this year to make it easier for governments and companies to build new solar farms, wind farms and power lines.” He notes that “investment in the grid is borne mainly by electricity customers through their power bills,” and advocates, “Tech companies should be made to finance long-term improvements to the grid by contributing to a national grid modernization fund.”

On a personal note, in the construction of our house several years ago, we chose geothermal for heating and cooling, and all electrical appliances to preclude the need for gas. Last year, we invested in solar and battery power, and now the sun supplies most of our energy needs. With these solutions in mind, I envision a future where this type of clean energy is the standard for new housing. Let’s actively pursue these solutions in our communities and advocate for policies that make clean, equitable energy systems accessible for all.

Julie Peller, Ph.D., is an environmental chemist (Professor of Chemistry at Valparaiso University). She has been writing a weekly column, The Green Junction, for the past seven years and is helping to move the call of Laudato Si to action. Her research interests include advanced oxidation for aqueous solutions, water quality analyses, emerging contaminants, air quality analyses, challenges along the Lake Michigan shoreline (such as Cladophora, water, and sediment contaminants), and student and citizen participation in environmental work.