Data center developers figured out that utilities will build whatever infrastructure you ask for so they're submitting the same projects to multiple utilities, bid shopping for the best rates and fastest connections. AEP Ohio fielded requests for 190 gigawatts when their entire system is only 37 gigawatts
The real issue is that utilities actually build this stuff. Billions in substations transmission upgrades, the whole infrastructure stack gets deployed based on inflated promises. When those projects never materialize or get scaled down, the costs don't disappear. They get passed to ratepayers through higher electricity bills. The bigger picture is messed up though. Tech companies are increasingly building their own on site power with fuel cells and generators anyway so ratepayers are funding grid infrastructure to compete against backup power systems the hyperscalers were going to use anyway. So basically, we're all subsidizing Meta and Googles infrastructure bets while they hedge by building their own power anyway. And when it doesn't work out we're stuck holding the bag with stranded assets. How is that not a regulatory failure?Source: StockMarket.News
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
Post your comment
No Comments