Congressmen: ‘Discriminatory’ to force consumers to subsidize data centers

Data centers are eating up the energy grid, and pushing up our electricity prices. And our politicians can’t get enough of them.

“It is unduly discriminatory to force our constituents to subsidize data center development through astronomical rates and costs. It is likewise unduly discriminatory to ask our constituents to tolerate interruptible electric service if PJM does not take action to address the impending imbalance of energy demand and capacity due to new data center loads,” a group of Mid-Atlantic congressmen and senators wrote in a letter to a guy named David Mills, a top official at PJM Interconnection, the grid operator responsible for coordinating electricity transmission in the DMV.

Wow, pushback against data centers from elected folks.

Shocking.

In the letter, the lawmakers – led by U.S. Sen. Chris Van Hollen, D-Md., and Congressman Don Beyer, D-Va. – expressed concerns over PJM’s handling of mounting affordability and reliability challenges.

The group pointed out that data centers have already resulted in more than $16 billion in additional capacity costs to consumers in the past two years – with total capacity costs alone potentially reaching $163 billion by 2033 if new energy capacity is not added to the grid fast enough to meet soaring demand.

“The projected increase in energy demand within PJM in the near future, driven almost entirely by new large data center loads, is a serious concern for future grid reliability, and our constituents are already feeling the impacts on their wallets,” the lawmakers wrote.

The group criticized PJM for favoring corporate interests over consumers by weakening a proposed reform that would have required large energy users such as data centers to limit their usage during capacity shortages, which threatens to worsen existing electricity affordability and reliability issues.

“PJM must swiftly address the fact that data center energy demand is threatening to overwhelm the grid,” the lawmakers wrote, going on to stress that there are steps that PJM can take to mitigate these risks – such as improving the process for connecting new energy generation sources to the grid and implementing strong “mandatory backstop” rules to prevent data centers from overwhelming the grid during periods of high demand.

“Mandatory backstop rules that apply to all new large loads would help shield other users of the grid – including residential homes, schools, and businesses – from higher prices and interruptions in service,” the group wrote. “PJM, however, has since updated its draft proposal to remove this important mandatory backstop, opting instead for a system that will rely on the willingness of data centers to voluntarily curtail their demand for a certain number of hours per year.”