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Data Centers will WRECK the Utility Industry

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As we continue to endure the Trump presidency, more and more people are concerned about data centers being built in their back yard. Trump met with the tech oligarchs on September 5th to “to Power American AI Dominance.” And while nothing in the official White House article mentions electricity, besides the “power” in the title, that is what the core of the meeting was about, according to @wizofai on Instagram.

Tech Billionaires Meet with Trump to Secure All of the U.S.’s Future Electricity

According to the post, the real reason for the meeting was:

“to secure electricity before it runs out. The real agenda? A $500B electricity crisis that could shut down AI development. Here’s what they’re not telling you:
Every major tech CEO at the summit shared the same fear:
We don’t have enough power for AI. Not enough to run trillion-parameter models.

Not enough to power hyperscale data centers

Not enought to meet the chip demand that doubles every 9 months

The media has spun it as: “Historic pledges for AI innovation.”
But behind closed doors, the conversation was blunt: Who gets the electricity? Because the grid can’t power everyone. The most shocking deal so far:

Microsoft just lock up all of three Mile Island’s nuclear output.

-837 megawatts

-20-year contract

Plant wont even restart until 2028. But Microsoft already owns every future electron it will produce.

Every 9 months, a new AI chip generation arrives (Nvidia Blackwell, AMD’s latest GPUs, Amazon’s custom chips) Each requires exponentially more power per rack.
A single hyperscale data center today needs: 300-400 megawatts of electricity. That’s enough to power a small city. Now multiply that by dozens of centers planned worldwide.

The U.S. grid wasn’t built for this.

-Decades of <1% annual growth

-Planners projecting 2$ growth now

-Reality? Could be 4-5%+

If true, the grid breaks. The cracks are already visible:

-Northern Virginia: grid congestion

-Texas: brownouts tied to data center demand

-Transformer lead times: 2-3 years

-Permitting backlogs: measured in years

And your electricity bills? About to skyrocket.

Yes the darling that was AI isn’t so sweet now is it? All those funny AI generated videos, like the ones you see spammed all over facebook, with the cats dressed up as chefs making bread, those are going to be raising your electric bill. Something behind the scenes is generating all of that AI slop you see and it takes a lot of computer power to do it.

I know I haven’t posted in a while, but more and more I am hearing of the atrocities of the U.S. government and what is going on regarding utilities. So I am going to be scanning the news and keeping you up to date on what is going on in the utility world. Right now a big threat to utilities is Data Centers. Not only do they use tons of electricity, they need tons of water to stay cooled. Which is why it blows my mind why they build data centers in hot places like Texas!

Data Centers Being Built on Park Designated Lands in Texas

There is a data center proposed to be built in Taylor, Texas and residents are fighting back with a lawsuit against Blueprint Data Centers. Residents say the land was meant to be a park and was donated to the City, but the city has sold it off to the highest bidder, Blue Print Data Centers, for $10 million. Just another case where the government has no regard for its citizens and prioritizes money and business over the well-being of their constituents.

Negative affects of data centers to nearby residents include:

  • brown water residue
  • low water pressure
  • pollution
  • increased electric costs
  • noise
  • diesel exhaust
  • nitrogen dioxide emmissions
  • strain on local utilities
  • loss of cultural areas
  • air quality issues

Source: Environmental and Community Impacts of Large Data Centers

Let us hope that these brave and courageous residents of Taylor, Texas win their lawsuit against the data center and get to keep the land as it was designated to be… a park! Although, to be honest, I don’t have much hope for the residents filing the lawsuit. It seems as though, in Texas at least, big business usually wins. I will definitely follow the case and let you know the outcome.

Big Tech Bros Are Energy Predators Causing Increased Energy Bills

Without electricity, these tech giants are nothing. And they will gut our communities and the environment to secure their share of the electricity in the future, because without it, they are toast. That wouldn’t be so bad now would it? Here is more from @wizofai on the importance of electricity to the Big Tech AI corporations.

Big Tech isn’t waiting. They’re moving fast:

-Buying land next to nuclear plants

-Signing 20-year deals before plants exist

-Converting Bitcoin mines into “AI-grade” power hubs

This is how desperate the scramble has become.

Wall Street already priced this in:

SMR startups with zero revenue = massive valuations

Bloom Energy stock surging on demand for hydrogen fuel cells

Microsoft, Oracle, Amazon all signing contracts for “future output” of plants not yet built.
Why the frenzy? Because in the AI economy: Power = profit

All the GPUs in the world mean nothing if you can’t plug them in.

This isn’t just an energy shortage, it’s a once-in-a-century reset of who controls technology itself. The trillion-dollar question:

-Who gets the electrons?

-And who gets left in the dark?

@wizofai


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Utility Hacker

The utility hacker is passionate about saving people money on their utility bills and protecting the environment. I was a utility bill auditor in Texas for 10 years. I am sharing my knowledge to help people survive the crazy utility industry that we live in today.