Senators Launch Probe into Tech Data Centers' Power Costs

Three Democratic U.S. senators have launched an investigation into the role of major technology companies in rising electricity costs for consumers, focusing on the massive energy demands of artificial intelligence data centers.

Senators Elizabeth Warren of Massachusetts, Chris Van Hollen of Maryland, and Richard Blumenthal of Connecticut sent letters on Monday to executives at seven firms: Alphabet's Google, Microsoft, Amazon, Meta Platforms, CoreWeave, Digital Realty, and Equinix. The lawmakers demanded detailed information on how these companies' data center projects are contributing to higher power bills and requested responses by January 12.

The probe centers on concerns that data centers, which power AI operations, consume enormous amounts of electricity, equivalent in some cases to that of an entire city. This demand forces utilities to invest billions in grid upgrades, including new power lines, substations, and plants. Utilities typically recover these costs through higher rates charged to all customers, including households and small businesses. The senators noted that such projects can increase wholesale power prices and strain local supplies, leading to broader rate...