Comment by mrguyorama
4 hours ago
Please tell me the mental model you have that you believe you can plug a 1GW load into an existing power network and not increase prices?
Do you think that distribution infrastructure required would be free? Do you think markets respond to new demand with new supply instantly?
The market incentive to increase generation is higher prices.
Data center investments, in terms of the energy they will require, far outstrip generation planning and buildout, and by a huge margin.
When you have a demand/supply equilibrium, and you drastically increase demand, what happens to the price?
I am not suggesting that data centers or any load growth for that matter have no impact on prices but rather challenging the idea than data centers are the primary/only reason certain regions have had price increases. Most of the shared links focus on PJM which imo has a flawed auction model that requires 3 year forecasts that nobody would expect to get correct. But it makes for sensational journalism because you can show pictures of data centers up against homes.
I have yet to see any strong research showing a correlation to data center growth and price increases. If you have any beyond a gut feeling I would love to read!