On July 14, New York Governor Kathy Hochul signed an order suspending the construction of new hyperscale data centers. The ban takes effect immediately and applies to data centers with electricity consumption of 50 megawatts or more. Previously, according to a study cited by Fortune, the rapid expansion of AI data centers in the United States has significantly driven up public electricity costs. The PJM market monitor, which oversees the grid for 14 states in the Mid-Atlantic and Midwest regions, estimates that the increased electricity demand from data centers will result in an additional cost of approximately $23 billion for electricity users, with this impact lasting at least until the end of 2028. The report states that although several large tech companies have committed to covering the costs of new electricity infrastructure, some expenses may still be passed on to residential and general commercial users due to the fact that costs for public facilities such as transmission lines, substations, and grid upgrades are typically allocated uniformly by regulators. The study also points out that some data centers can reduce their electricity consumption during peak grid periods by flexibly adjusting their load, thereby lowering the grid costs allocated based on peak load, but they still consume a large amount of electricity, resulting in their actual cost burden potentially being lower than the pressure they exert on the grid.
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