Data centres (or any other increasing source of load) can raise electricity prices in two main ways. First, by requiring more generation capacity (or demand response). When new large loads like data centres connect to the grid, they increase total electricity demand. If that demand pushes up against supply constraints — particularly during peak periods — it can tighten the wholesale electricity market, driving up spot prices that flow through to all consumers. This can also bring forward the need for new generation investment. Demand response — paying large consumers to reduce their load during tight periods — can help, but it’s an additional cost borne by the system. Second, by requiring more electricity network infrastructure to accommodate peak demand. Transmission and distribution network costs are, in simple terms, ultimately paid for by all electricity consumers (including you and me). It shows up in our household electricity bill partly under the fixed daily charge, and partly as a volumetric charge (the more energy you consume, the more of the total fixed network cost you pay for). submitted by /u/Vegan-bandit
Originally posted by u/Vegan-bandit on r/ArtificialInteligence
