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Keith Romer

๐Ÿ‘ค Speaker
218 total appearances

Appearances Over Time

Podcast Appearances

Planet Money
What AI data centers are doing to your electric bill

For one, a data center company could ask to be connected, get AEP Ohio to build all this infrastructure, and then just never actually build that data center.

Planet Money
What AI data centers are doing to your electric bill

Data centers did have to help pay for the new infrastructure built specifically for them, but only to a point.

Planet Money
What AI data centers are doing to your electric bill

They were required to pay for at least 60% of the energy they asked for, whether or not they used it.

Planet Money
What AI data centers are doing to your electric bill

Mark worried, though, that that might not be enough.

Planet Money
What AI data centers are doing to your electric bill

Let's say it's a billion dollars to build that infrastructure.

Planet Money
What AI data centers are doing to your electric bill

Mark, we should say, was under some real pressure here.

Planet Money
What AI data centers are doing to your electric bill

Pretty much everybody's electricity bills were going up.

Planet Money
What AI data centers are doing to your electric bill

And to the extent that people could put a face to the problem, it was Mark's face.

Planet Money
What AI data centers are doing to your electric bill

In 2023, AAP Ohio made a big decision.

Planet Money
What AI data centers are doing to your electric bill

They were going to stop letting any new data centers sign up for power.

Planet Money
What AI data centers are doing to your electric bill

They essentially pressed pause on the whole process.

Planet Money
What AI data centers are doing to your electric bill

And Mark and his team got to work trying to find a lasting solution.

Planet Money
What AI data centers are doing to your electric bill

Finally, they would make data centers pay for a larger share of the energy they asked for.

Planet Money
What AI data centers are doing to your electric bill

Instead of requiring them to pay at least 60% of the power they had requested, AEP Ohio was going to ask for as much as 85%.

Planet Money
What AI data centers are doing to your electric bill

Mark acknowledges that residential customers will still pay for some of the infrastructure costs from data centers, but it should be a lot less now.

Planet Money
What AI data centers are doing to your electric bill

So if the problem isn't distribution, how are data centers making things more expensive?

Planet Money
What AI data centers are doing to your electric bill

Well, the next place to look is one step further up the chain at what is called transmission.

Planet Money
What AI data centers are doing to your electric bill

So not how electricity gets moved around on a local scale, but on a much bigger scale.

Planet Money
What AI data centers are doing to your electric bill

The grid of giant power lines that connects power plants from one state to customers hundreds of miles away.

Planet Money
What AI data centers are doing to your electric bill

Cameron works for AEP, which is the parent company of AEP Ohio.