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Utility executives’ salaries could become tied to their companies keeping electricity rates from rising faster than inflation if new legislati…
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A California watchdog is urging state lawmakers to make data centers cover their own power costs, so households do not pay more. The Little Hoover Commission warns that AI-driven growth could strain the grid and raise utility bills. The report says regulators need clearer data on where demand lands. It seeks confidential, facility-level reporting on electricity use. It also calls for a special rate class for extremely large power users. The plan includes prepaying for grid upgrades and helping cover wildfire safety costs. The report also flags backup diesel generators, carbon emissions, and water use by data centers as hampering California's climate goals.
Politicians from President Donald Trump to local lawmakers agree that tech companies should cover the power costs of artificial intelligence data centers. But they still fight over what "fair share" means. The debate ties directly to cost-of-living pressure ahead of the midterm elections. Data centers keep spreading fast, and some use as much electricity as a small city. Utilities often spread new power plant and grid costs across all customers. States have started writing rules that require long-term contracts and big upfront payments. Consumer advocates warn the short-term squeeze still pushes up bills.
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Tools that power artificial intelligence devour energy. But attempts to shield regular Californians from footing the bill in 2025 ended with a…
San Mateo County legislators kept the focus on consumer protections, technology, artificial intelligence and energy this year.Â
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San Jose is now ground zero in California's battle over how to govern the rise of data centers used to power artificial intelligence. The county seat of Santa Clara is touting its partnership with Pacific Gas & Electric, claiming the city is "the West Coast's premier destination for data center development." Panelists at a CalMatters event in downtown San Jose clashed over key issues. Their discussion centered on how quickly California should move to accommodate new demand, what information the public should be entitled to and how to keep customers from shouldering the cost of infrastructure that may never be fully used.
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