A new Senate bill would shield consumers from data centers’ rising energy costs. The instinct is right. The diagnosis is wrong.
Data centers now account for roughly 7% of U.S. electricity demand, roughly equivalent to powering every home in California and Texas combined, up from about 1% just 15 years ago — the equivalent of powering every home in California and Texas combined. That curve is still steepening. The four largest hyperscale tech companies are projected to spend a combined $650 billion in capital expenditures this year alone. When numbers get that big, it’s natural to ask whether the current system makes sense.
But this bill treats data centers as the problem. The truth is more interesting than that. Data center challenges are a symptom of a grid that has been underbuilt and undermodernized for decades, but the right data centers, designed the right way, can actually help solve these same problems. And the right data centers, designed the right way, ca
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