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Nittersing

(7,882 posts)
Fri Nov 7, 2025, 08:43 AM Yesterday

Is AI blowing up our electricity prices? An expert weighs in.

https://coloradosun.com/2025/11/07/ai-electric-demand-colorado-inflation-consumers/

"While your kids are using Chat GPT for therapy, and your influencer cousin is creating anime superhero movies with Sora 2, is your electricity bill headed for the moon?

That’s the driving consumer-policy question asked pointedly by artificial intelligence consultant Brandon Owens and Colorado School of Mines public policy professor Morgan Bazilian. They team up for op-eds clanging alarm bells for consumers and policymakers who must cope with AI’s exploding demand for limited electricity supplies.

“While the world marvels at what large language models can write or design, fewer people are asking a more basic question: who’s paying to keep their servers running?” the duo wrote in a piece published by The National Interest, a magazine published by the Center for the National Interest public policy think tank.

They warn that without more public attention, the AI giants will be “socializing” the enormous energy costs of running their suddenly ubiquitous programs, while privatizing the enormous profits. Beyond the simple economics of their demand pushing up prices for all consumers, the AI industry possesses other advantages, the authors argue: AI giants possess hidden information and pipelines that allow them to control the flow of energy to their advantage. "
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Is AI blowing up our electricity prices? An expert weighs in. (Original Post) Nittersing Yesterday OP
No, Krasnov is blowing up electricity prices gab13by13 23 hrs ago #1
In one scenario capacity expands for 3 years GreatGazoo 22 hrs ago #2

gab13by13

(30,493 posts)
1. No, Krasnov is blowing up electricity prices
Fri Nov 7, 2025, 09:01 AM
23 hrs ago

by gutting wind, solar, and other clean energy subsidies. Krasnov subsidized an underwater coal business but gutted clean energy projects.

The clean energy companies were driving down the price of electricity.

GreatGazoo

(4,287 posts)
2. In one scenario capacity expands for 3 years
Fri Nov 7, 2025, 10:22 AM
22 hrs ago

as they add nuclear and more hydro to the grid. And then at whatever point in time, the efficiency of data centers goes way up due to chip design, improvements in software and advances in quantum. Simultaneously the consolidation of the AI business will mean less demand as some data centers will fall idle.

The cost of fuels is down. Nat gas is down about 50% from the highs in 2022, eg now $4.32 versus $8.80. But the privatization of "last mile" delivery will elevate prices until that bottleneck is broken or outlawed. Local electric companies will buy input at the lowest cost available in the market but will not pass on any reductions in cost.

Electricity is a not a source -- it is only a delivery system.

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