Three U.S. senators have initiated an investigation into whether rising energy demands from artificial intelligence are contributing to increased residential power bills. Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal have sent inquiries to major tech companies, including Amazon, Microsoft, Google, and Meta, focusing on the impact of AI on local utilities and ratepayers.
In response, Amazon released a white paper stating that its data centers are not solely responsible for these issues. The company claims that in many areas, its expenditures on electricity already exceed necessary costs. The report indicated that a standard 100 megawatt data center pays approximately an extra $3.4 million to cover utility impacts, which may include infrastructure upgrades.
The Amazon-funded analysis, conducted by E3, examined data centers in several states, including Oregon, California, and Mississippi. It noted that the financial contributions from data centers could help lower rates for other customers, although the realization of these benefits will vary by jurisdiction. The findings suggest that the positive impact on utilities and consumers may persist until 2030, provided that utilities adapt their rate structures accordingly.