AI Centers May Double CT Bills
It’s no secret that CT pays some of the highest electricity bills in the country. That’s because supply constraints, high demand, and a volatile energy market are pushing prices higher. But although lawmakers are working to find solutions, CT consumers struggle to find the cheapest electric rates. Now, the spread of AI and other data centers may be making things a lot harder in the near future. So, how much energy do these data centers need and what could it do to our energy bills? Let’s talk about how AI centers could double your CT energy bills.
Power Cost of CT Data Centers
You might be asking why AI tech is so important. Many developers and analysts argue that it is necessary to stay competitive in the worldwide market. This is especially true given how fast major companies are adopting AI use. This is one reason why Hartford city, among other facilities and agencies, are vying for state funding for AI development.
However important this may be, AI has one massive problem: data centers eat up a LOT of energy.
In fact, some experts suggest that one data center may use more than 600 megawatts (MW) by itself! To put this in perspective, one MW of power is equal to 1,000 kilowatts. An average CT home uses around 678 kilowatt-hours (kWh) per month. This means one data center could use enough energy in any one moment to power over 880 homes for an entire month!
Unfortunately, we don’t have exact numbers on number of data centers and their energy needs. However, current information sources state that CT currently has between 16-19 data centers. This number is expected to rise in just the next 5 years. As a result, the energy demand would rise a lot as well. In fact, utilities in Ohio predict that energy demand from AI centers could rise to as much as 5000 MW by 2030!
How AI Centers Affect Energy Rates
As you know, CT’s energy largely comes from natural gas generators and from the Millstone nuclear power plant. However, energy prices remain high due to the natural gas prices as well as seasonal demand during the summer and winter months. As a result, rates have risen. This includes January’s 7.2% Eversource standard service rate increase.
So what happens when you factor in the energy demand from AI data centers?
According to a recent Power Choice Texas study, CT consumer electric bills could rise by close to 68% by 2030. This would mean monthly bills jumping from about $168 last year, to an estimated $279 per month in 2030!
Cut Your CT Bills Today
Thankfully, new AI data centers will take time to build. This means that prices may not spike in the next few months. However, technology is building every day and it’s clear that CT lawmakers want to be on the cutting edge. That’s why it’s important to shop for the cheapest rates, so you can lock in savings for the future.
There’s no better place to shop than right here at https://www.ctenergyratings.com. We’re also you first step to find news and tips that could affect your bills.