Do data centers actually increase electricity prices? No...and yes

You don’t have to look far to see the vitriol and backlash ignited by the rapid expansion of hyperscaler data centers. While critics and activists tend to focus their ire on resource consumption and residents’ electricity bills, the reality of data center economics is far more complex. 

In this episode of Catalyst, host Shayle Kann sits down with Andy Lubershane, head of research at Energy Impact Partners, to unpack the nuances. They crunch the numbers behind utility rate structures, consider the "denominator effect" that can lower customers’ rates, and dig into the supply chain crunches pushing global power system costs higher.

Shayle and Andy discuss:

- Why a new data center can reduce utility rates for locals while contributing to rising costs elsewhere

- How data centers impact utility tariff rates

- Separating public perception of data centers from the reality of the grid

- How soaring demand for transformers, switchgear, conductors, gas turbines, and labor is driving systemic cost increases across the power sector

- Strategies to mitigate rising global grid costs, from load flexibility and distributed energy resources (DERs) to energy efficiency hardware

- Catalyst: What comes after the data center backlash?

- Catalyst: Enter the electric supercycle

- Catalyst: Can AI revolutionize grid operations?

- Catalyst: Inside the AI power wars