Study: data center buildout 2015-2024 slightly lowered US electricity prices
Afinetheorem · x · 2026-09-24
An arXiv paper by EPRI researchers using an instrumental variables approach finds data centers caused average US retail electricity rates to fall modestly from 2015 to 2024, contrary to prevailing sentiment.
- Data centers used 4.5% of US electricity in 2024, more than double five years prior, projected 9-17% by 2030
- Mechanism: existing fixed costs, transmission/distribution economies of scale, and declining generation unit costs mean durable demand growth lowers average prices
- Scale economies found across transmission, distribution, generation and customer classes
- Caveat: future supply constraints could reverse the effect
Context: AI-driven buildout has sparked local backlash and construction bans, with rate impacts a central point of contention.
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