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First major study on Data Centers and electric prices finds they actually reduce prices

Posted on 6/20/26 at 10:36 am
Posted by HailHailtoMichigan!
Mission Viejo, CA
Member since Mar 2012
74427 posts
Posted on 6/20/26 at 10:36 am
quote:

LINK

We estimate that data centers caused average retail electricity rates to fall modestly in the United States from 2015 to 2024 using an instrumental variables approach. Despite prevailing sentiment, the finding is consistent with economic reasoning: existing large power system fixed costs, economies of scale in transmission and distribution, and declining unit costs for generation imply that durable demand growth lowers average prices. We find patterns of economies of scale for transmission, distribution, and generation costs as well as within and across retail customer classes. We caution that future supply constraints could reverse the effect.





Posted by Sunnyvale
Little ST. James
Member since Feb 2024
3517 posts
Posted on 6/20/26 at 10:37 am to
Your telling me that "Cleco and Entergry of Louisiana is going to lower energy rates?


You are lying through your teeth.
Posted by AtlantaLSUfan
Baton Rouge
Member since Mar 2009
27331 posts
Posted on 6/20/26 at 10:39 am to
quote:

Study

Propaganda.

These aren’t data centers, we already have all the data centers we need. I worked in them in Virginia entire floors were empty.

These new monstrosities going up in every state are Ai centers. We are building something that could ruin humanity, meanwhile local governments are clapping like seals to welcome them.
Posted by billjamin
Houston
Member since Jun 2019
18583 posts
Posted on 6/20/26 at 10:41 am to
Posted by holdmuh keystonelite
Member since Oct 2020
4919 posts
Posted on 6/20/26 at 10:42 am to
Sorry I don't believe everything I read. A lot of these studies are funded by the ones that need positive things to be said about them.
Posted by Spankum
The Sip
Member since Jan 2007
62637 posts
Posted on 6/20/26 at 10:43 am to
I didn’t read the entire article, but I’d like to know who funded the study. That will tell us all we need to know!
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52650 posts
Posted on 6/20/26 at 10:43 am to
Study funded by EPRI which is funded by the utility and power companies..

I'm sure it's legit
Posted by Scruffy
Kansas City
Member since Jul 2011
77530 posts
Posted on 6/20/26 at 12:40 pm to
Just going to point out that the primary funding of the institute that put this out happens to be the energy companies and governmental agencies.

That isn’t to dismiss the findings, but it does make the findings suspect.

Also, I see no “declaration regarding conflicts of interest” or “declaration of funding”, unless I missed it.
Posted by GreatLakesTiger24
Member since May 2012
60998 posts
Posted on 6/20/26 at 12:42 pm to
there are two things we love on tiger droppings. data centers and our greatest ally in the Middle East.
Posted by kengel2
Team Gun
Member since Mar 2004
33786 posts
Posted on 6/20/26 at 12:42 pm to
quote:

First major study


Can make a study say whatever the f you want.
Posted by kywildcatfanone
Wildcat Country!
Member since Oct 2012
140210 posts
Posted on 6/20/26 at 12:45 pm to
Who paid for the study?
Posted by RedFoxx
New Orleans, LA
Member since Jan 2009
6774 posts
Posted on 6/20/26 at 12:51 pm to
I asked chat gpt and they said it’s true

Posted by TooFyeToFly
Athens, GA
Member since Nov 2012
2328 posts
Posted on 6/20/26 at 12:52 pm to
You seem to have missed the most important conclusion of the study, which was literally the last sentence of the abstract:

"We caution that future supply constraints could reverse the effect."

This is not the good news you thought it was. I'd recommend reading past the headline next time.
Posted by Prominentwon
LSU, McNeese St. Fan
Member since Jan 2005
95065 posts
Posted on 6/20/26 at 12:57 pm to
So wait, you’re telling me that the panic on social media isn’t entirely accurate???
Posted by Fat and Happy
Baton Rouge
Member since Jan 2013
20086 posts
Posted on 6/20/26 at 12:58 pm to
There is always an ulterior motive.
Posted by Salmon
I helped draft the email
Member since Feb 2008
86445 posts
Posted on 6/20/26 at 12:59 pm to
Weird that the study stopped in 2024 right before we started building these new massive AI data centers
Posted by PhilipMarlowe
Member since Mar 2013
21962 posts
Posted on 6/20/26 at 1:05 pm to
This message paid for by data centers.
Posted by Sofaking2
Member since Apr 2023
21627 posts
Posted on 6/20/26 at 1:24 pm to
quote:

Your telling me that "Cleco and Entergry of Louisiana is going to lower energy rates? You are lying through your teeth.

Lies, damned lies, and statistics, lol. Data centers will increase electricity usage and Cleco and Entergy will lower their prices? Ok
This post was edited on 6/20/26 at 1:28 pm
Posted by Sneauxghost
Member since Sep 2020
1359 posts
Posted on 6/21/26 at 2:41 am to
So, the data centers paid someone to write an article portraying them as a good thing? Checks out.
Posted by Lawyered
The Sip
Member since Oct 2016
38524 posts
Posted on 6/21/26 at 4:43 am to
Brought to you by Pfizer !
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