75. How Could Data Center Growth Affect Future Electricity Costs?

This week on the EPRI Current, we explore one of the energy sector’s most recently debated questions: Are data centers driving up electricity rates? Host Samantha Gilman is joined by Geoff Blanford and Asa Watten of EPRI’s Energy Systems and Climate Analysis team to discuss new research examining the relationship between data center growth and consumer electricity costs. Drawing on a decade of data, they examine why the relationship between rising demand and rising rates may be more complex than many assume, and why, in some cases, load growth can help improve affordability by spreading grid costs across more customers. The conversation also looks ahead to the future of AI-driven electricity demand, the challenges of building grid infrastructure fast enough to keep pace, and how flexible demand initiatives like EPRI’s DCFlex could help balance reliability, affordability, and growth. Tune in for a data-driven discussion that challenges conventional wisdom and offers fresh insight into one of the industry's most important debates.

Read the full working paper: https://arxiv.org/pdf/2606.19777

Summary and key insights available here: https://restservice.epri.com/publicattachment/98650

Explore related EPRI research:

Win-Win Watts: https://winwin.epri.com/
Energy Wallet: https://energywallet.epri.com/
DCFlex Initiative: https://dcflex.epri.com/

For more episodes visit EPRI.com.

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EPRI Current examines key issues and new R&D impacting the energy transition. Each episode features insights from EPRI, the world's preeminent independent, non-profit energy research and development organization, and from other energy industry leaders. We also discuss how innovative technologies are shaping the global energy future. Learn more at www.epri.com

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