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Short Wave

What Are AI Data Centers Doing To Your Electric Bill?

03 Dec 2025

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.031 - 16.656 Unknown

Support for NPR and the following message come from Freshworks, who believes complexity is the enemy of efficiency. Stop wrestling with bloated, expensive software. Uncomplicate with Fresh Service for IT and Freshdesk for customer support. Learn more at freshworks.com.

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17.716 - 42.845 Emily Kwong

Hello there, short ravers. Emily Kwong here with a quick word before the show. So this week is Giving Tuesday. That is the global day of generosity that NPR celebrates every year. But this year is different because it is the first time in 50 years that NPR is operating without federal funding. That is a huge deal and a big challenge. but it is one that we can take on together.

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43.326 - 65.159 Emily Kwong

At Shortwave, we bring you science coverage that is fun, human, that introduces you to new ideas, amazing discoveries, and everyday mysteries. It helps you feel a little more connected to this planet and the people we share it with. We know all of this matters to you, and that is why some of you have already stepped up to share in the cost of bringing you Shortwave each week.

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65.62 - 89.011 Emily Kwong

Like Gloria, a listener in Texas who says, I would be less informed, thoughtful, and interesting without Fresh Air, ThruLine, Shortwave, and Up First. I love these programs, and I hope they continue. We are so grateful to listeners like Gloria who have stepped up to support NPR this year. You can join them. Sign up for NPR Plus and Mark Giving Tuesday.

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89.511 - 113.113 Emily Kwong

This is a simple recurring donation that gets you perks to NPR's podcasts. Join at plus.npr.org. Thanks again for your support. Here's the show. You're listening to Shortwave from NPR. Hi, short wavers. Emily Kwong here with NPR alum, now independent science writer, one of our favorite reporters on the planet, Dan Charles.

113.674 - 116.098 Dan Charles

Oh, you make me all choked up. Hi, Emily.

116.118 - 122.429 Emily Kwong

Hey, Dan. OK, you've brought us basically a mystery novel, something about money and power.

123.09 - 147.831 Dan Charles

Electric power. I took a field trip the other day, Emily, and I made you a little audio postcard. So here I am in Data Center Alley, Northern Virginia, Loudoun County, and I'm standing along the road and there is not a person in sight, but I'm seeing these enormous buildings. And along the road there are these enormous power lines, steel towers with wires hanging from them.

148.372 - 153.799 Dan Charles

There is so much electricity flowing into this place, like rivers and rivers of electricity.

Chapter 2: How are data centers impacting electricity costs for consumers?

756.78 - 762.527 Dan Charles

Right now, there's a company that wants to build a big solar farm called Cassius Blue in southern Virginia.

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Chapter 3: What findings did the analysis from Carnegie Mellon and North Carolina State reveal?

763.048 - 765.531 Dan Charles

That's named for a really pretty butterfly species, by the way.

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765.571 - 765.871 Emily Kwong

Nice.

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766.372 - 788.69 Dan Charles

Okay. So in order for Cassius Blue, the solar farm, to connect to the electrical grid, Huh. Okay. So it sounds like if you are a solar or wind farm generating electricity, you have to pay for the power lines.

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789.231 - 800.209 Emily Kwong

But if you are consuming electricity, like you're a customer, a big data center, you have to pay for the power lines. You don't have to pay for that upgrade. Instead, everybody gets a rate increase tacked onto their bill to build those power lines.

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800.47 - 810.928 Dan Charles

That is the way the system works right now. Those are the rules. And Mike says the rules should change, that data centers should have to pay up front for the power lines they need, just like solar farms.

811.077 - 813.922 Emily Kwong

What are the chances, Dan, that this will actually happen?

814.282 - 833.593 Dan Charles

Yeah, it actually is possible, I think. Data centers are not popular these days. They're running into more and more opposition. And just a few weeks ago, the Trump administration actually called for a new federal rule that would require new data centers to pay the costs involved in connecting them to the grid. Oh, wow. That's a big shift.

833.613 - 847.875 Dan Charles

Yeah, it was kind of a shock because the Trump administration has been very enthusiastic about AI. Mike Jacobs says it's not really clear if there will be any such rule because this has always been something that state regulators had control over, not the federal government.

848.175 - 855.907 Mike Jacobs

But they're asking for the right thing. So we got a nice little fight unfolding over this very problem.

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