U.S. household electricity bills are rising; left-wing Senator Sanders writes to the White House: Don't let ordinary people pay for tech giants' AI dreams.

The wave of data center construction is facing close scrutiny from U.S. politicians, as its immense pressure on the power grid and direct impact on consumer electricity prices is becoming an increasingly sharp political and economic issue in America.

On November 10, according to media reports, a group of left-wing senators led by Senator Sanders has written to the White House and Commerce Secretary Gina Raimondo, demanding the U.S. government explain how it will address the issue of rising electricity prices exacerbated by the expansion of data centers.

They pointed out that tech giants such as Meta, OpenAI, and Alphabet are driving a historic wave of infrastructure construction across the U.S., and their enormous demand for electricity is putting financial pressure on ordinary families.

The letter uses stern language, stating that the Trump administration’s fast-track approval policy for these projects is forcing Americans to "compete in bids against trillion-dollar companies just to keep household lights on."

According to data from the U.S. Department of Labor, in September this year, residential electricity bills in the U.S. rose 5.1% year-on-year, becoming a factor that keeps inflation above the Federal Reserve’s target.

Although the development of AI has injected strong momentum into the U.S. economy and capital markets, the massive energy consumption and costs behind it have triggered widespread concern from local communities to Congress, and may pose new regulatory risks for tech companies' future expansion plans and related investments.

Senators call for federal intervention to ensure tech giants bear the cost

The main demand of the letter is for regulatory safeguards at the federal level to ensure that the huge costs of building data centers are borne by the big tech companies creating them, rather than being passed on to ordinary consumers.

In addition to Sanders, the letter was co-signed by Maryland Democratic Senator Chris Van Hollen, Massachusetts Democratic Senator Ed Markey, and Oregon Democratic Senator Ron Wyden.

It is worth noting that Oregon, represented by Wyden, is one of the largest data center markets in the country. Connecticut Democratic Senator Richard Blumenthal told the media:

The focus is not to stop data centers, but to ensure that the cost is shouldered by the giant companies creating them, while controlling or even lowering electricity prices.

Blumenthal added that he worries power regulators and local officials "may be swayed by the huge financial pressure these companies can bring." The senators are calling for “government-level safeguards and oversight mechanisms” to address this challenge.

Rising electricity prices fueling inflation, becoming a new political issue

During last year’s campaign, Trump promised to cut energy costs by 50%. Although gasoline prices have declined, the continued rise in electricity prices sharply contrasts with this pledge.

According to the Department of Labor, the 5.1% year-on-year increase in electricity prices in September is one of the reasons overall inflation remains high. Reports say concerns about rising electricity bills have become a factor contributing to the Democratic victories in last week’s gubernatorial election in New Jersey as well as local elections in Virginia and Georgia.

The power market has always been opaque, and price hikes may stem from transmission line upgrades, commodity price fluctuations, and expensive fire prevention measures, with these factors differing by region.

In many areas, local activists have begun to organize opposition to large-scale tax breaks for data centers. Analysts warn that data centers are intensifying electricity pressures in some regions, as their rate of development outpaces utilities’ ability to expand power generation capacity.

In terms of energy choices, U.S. government officials prefer to support construction with natural gas and coal, while cutting subsidies for renewable energy.

In response, many developers are seeking to build their own independent power sources to avoid supply chain bottlenecks and the regulatory hassles that can come with connecting to traditional power grids.

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