National leaders warn AI data centers may hike utility rates. The SHIELD Act aims to protect consumers, while local initiatives seek to manage energy demands.
SAN DIEGO COUNTY, Calif. — National and county leaders are sounding an alarm about the rapid expansion of artificial intelligence data centers and their massive energy demands, warning that consumers could be left footing the bill through increased utility rates.
On Tuesday, North County Congressman Mike Levin introduced the SHIELD Act, a national bill designed to protect consumers from electric rate hikes caused by the growing number of AI data centers. “We just have to make sure that as all that happens that the benefit that will go to these companies isn’t being born at the expense of the average ratepayer,” said Mike Levin.
The concern is urgent: some hyperscale data centers can use as much power in a year as 100,000 homes. A third of all U.S. data centers are located in just three states—Virginia, Texas, and California—with California hosting 319 data centers.
AI data centers are large facilities that house rows of computer servers, data storage systems, and networking equipment, along with power and water systems for cooling. The energy demands are substantial and growing rapidly.
“We shouldn’t be expecting the average rate payer to foot the bill,” said Mike Levin.
On the same day, the San Diego County Board of Supervisors voted unanimously to approve an initiative led by Supervisor Jim Desmond directing county staff to develop safeguards within 180 days to address AI data centers and ensure ratepayers don’t shoulder the energy costs if such facilities come to San Diego.
“Here’s where we can regulate them or potentially not regulate them to make sure that San Diegans are protected particularly the rate payers we don’t want our electricity rates spiking because of these coming in,” said Jim Desmond.
Currently, SDG&E reports there are no data centers in San Diego County and indicates it would be unlikely for any to arrive due to the region’s already high electric rates and expensive land costs.
However, the problem is already affecting other states. Research from the Pew Centers shows electric rates have already increased in states with data centers—by $18 a month in Western Maryland and $16 a month in Ohio over the past year.