because no one believes there are legal consequences if they don't
and there are a lot of ways to doge it even if there where a reliable government in place
like especially if they do what they have been doing recently (run their own generator, build their own power planes) a lot of this cost is implicit and as such very dogeable. E.g. higher cost for gas power planes for other due to major increase of demand, higher medical cost due to more air pollution, higher fuel prices, etc. etc. (not even speaking about anything climate change).
And it's not just data centers, it's all sorts of industry. My local gravel and concrete plants run their "big stuff" off generators because the cost of the utility drop for their amperage doesn't make sense. And nobody will connect the dots between these choices and the requirements we've saddled utilities with. They're spinning up generator not because it's cheaper per watt, but because they're not operating on the 40yr timeline you need to be in order for the red tape you have to go through to put in permanent infrastructure to pencil out.
I'm an abutter for a utility project and I've gone to the meetings for and it's an absolute massive boondoggle. My energy bill is going to reflect god knows how many hundreds of billable hours it takes for these hired lawyers and engineers to prove to the system that they're not gonna fuck over any endangered frogs by widening the cut to meet some industry standard that changed over the past N year and dumping culverts and fill in some places where streams criss cross it.
Literally nobody involved cares. The abutters don't care. The town wants it to go forward because it's all trivial and it's not like it won't be their ass if they block an upgrade to industry standards and something happens. The system is just going through the motions. The city engineer grills them about petty bullshit because it's literally his job. They know he will and they have the answers but he makes a show out of the subjective things. Ditto for the conservation commissioner. It's like the Israel missiles meme. One side is my tax dollars and the other side is my energy bill. We're all doing this because some slimy politicians wanted to pander to some shortsighted big picture ignoring environmentalists 50yr ago and beurocacy has perpetuated and grown itself since. No public interest is served by this.
And the cherry on top is that at the margin, we get shit like generators that don't need to exist because the cost of the alternative is driven up to the point the fuel inefficient (and also dirty) solution makes sense.
Exactly opposite will happen. Reason is, when Big Tech is paying huge amounts of money to contractors to build those power generation facilities and service companies to service it, they will abandon servicing other facilities (remember how Micron dropped consumer RAMs last year because of enterprise demand) or require higher pay from everyone else
1. DCs must be built anyway
2. You can't take away energy from households
(3). Highly preferred that you are not going to impact cost negatively to households (otherwise why we have this discussion)
based on these assumptions, solution I see is, BigTech subsidising energy costs for 10 years for nearby households (area will be geofenced, e.g. in the radius of 50km), subsidy will be based on the prices outside of that radius. e.g. if you everyone outside of closest DC pays 1$ and in the radius prices become 1.5$, 0.5$ will be covered by BigTech and they're also responsible & pay to setup the system to automatically include everyone in subsidy program, not like you need to apply
Also BigTech is not going to build the power generation plants, it must be built by existing processes to minimize impact on pricing
I was unaware it was optional.
There's some speculation in the comments about what is or isn't in the pledge. I recommend reading it yourself.
[0] https://www.whitehouse.gov/articles/2026/03/ratepayer-protec...
[1] https://www.whitehouse.gov/presidential-actions/2026/03/rate...
> IN WITNESS WHEREOF, I have hereunto set my hand this fourth day of March, in the year of our Lord two thousand twenty-six, and of the Independence of the United States of America the two hundred and fiftieth.
One can do the former whilst repudiating the latter and remain logically consistent.
We just approved the first nuclear plant in 20 years to a company owned by Bill Gates and in a state that has basically nothing but farmland and a Microsoft datacenter.
This absolutely cannot backfire. /s
The threat is: This "datacenter power" disincentives buildout of "free" powerplants (by eating up significant demand at very low margins thanks to basically vertical integration); this slows down buildout of "normal" infrastructure (possibly both grid connectivity and power), and the electrical energy market becomes worse for consumers than it is now.
I personally think all of this is very speculative for now, but allowing industry to rely on the grid (which they still would!) while almost exclusively "buying" their own power is a risky proposition from a consumer perspective.
Interconnection expenses.
Same issues as with mining and large industrial clients generally.
In a different world they would have earned trust and deserve the benefit of the doubt. This is not that world.
It reduces profit.
Increasing natural gas generation is of course disastrous policy with a major death toll from the climate disaster, there needs to be a rampdown of fossils use and production.
So no.
But what probably also isn't included but should is environmental damage.
Running low quality "temp." gas turbines non stop isn't without filters etc. isn't just bad for the climate, it's a air pollution which can directly affect anyone in it's path with not only increased chances for lounge cancer but also much more short term effects like asthma, and increased chances of asthma attacks ending deadly. Especially if the weather prevents easy dispersion (like it tends to do in winter). It's not that long ago (<80y) that the west had acid rains, and deadly smog accidents exactly from this kind of negligent shit. And if we look at Asia this is sometimes still a topic today (but has gotten much better compared to just ~20 years ago).
No MBA pencil pusher wants to run an inefficient local turbine. It's just that the timeline and upper cost bound of doing that is less crap than having a "real utility" build more power at "real utility scale" and run you a wire because the latter is subject to all manner of delay and cost overrun.
And there's no inherent physical or economic reason for it to be that way. We made it that way. The metaphorical local turbine is less worse specifically because people like you, saying the exact same things you're saying right now have saddled the "real utility scale" generation, and more importantly, the wire to the big industrial consumer who'd pay for it with all sorts of requirements.
It costs tens of thousands of dollars of lawyers and engineering over years just to dump a concrete culvert in a ravine where it crosses a power line clearing and fill over the top, all because of the red tape. Say nothing of the cost to do all the legal paperwork to get the utility cut in the first place. Now multiply by every mile the wire has to go, add in the wires, etc, etc. For an industry that might boom and bust in 2, 5, 10yr dumping a fuel guzzling turbine in your parking lot at 5x the cost per watt starts to look pretty good.
When our civilisation is excavated in 500 years, they are going to say we were as crazy as all of the others.
trees aren't just carbon, they are bio mass/nutrition
and if you constantly remove bio mass you sooner or later run into issues
(Which we already do in some places, e.g. when over using fields (see US dust storms), or with some managed Forrest getting increasingly more unstable not just because of warmed climate but also because of removing dead treas leading to an interruption of the natural nutrient recycling (and insect habitats) leading to Nutrition deficiency in the long run.)
but we do have working carbon removal technologies, they are just not cheap
hence why you want companies to pay for them, it gives them a huge reason to reduce emissions instead
completely ignoring all existing technologies related to that topic to spout obvious nonsense about "cutting down trees and burying them" (which would bind active bio mass which isn't a grate idea, also that won't produce oil anyway not that this is relevant for the discussion)
various ways to reduce the carbon in the air do exist (and without trees)
and the carbon can be both recycled for other usage and literally placed in the earth, too
it is not rally a solution for climate change as it's very expensive to do. But this also makes it a good idea to "make companies pay for it" (at least if their carbon-equivalent output goes above a certain threshold). Because if they have the choice between very expensive carbon removal or reducing carbon output for a much cheaper price they will do the later; But in emergency/outlier situations they still can do the former, just at a very high price.).
Theoretically you could harness some of those volatiles for some energy production, but at the very least use those volatiles to heat the wood and make it charcoal for basically free.
Actually, the tweet quoted in the article is firmly in the "you can't make this $%&/ up" category...
It is also a ~50 year investment.
This makes it not very attractive for companies and is why most nuclear power is state sub-ventioned.
Theoretically the US had something similar to a state bank to help companies to finance exactly such projects, but Trump/DOGE defounded it for publicity reasons which makes it even less likely for private nuclear power plants.
Many "we will use nuclear power" statements do rely on mini reactors. But AFIK pretty much all mini reactor projects have ended in dead ends so far. With promised at best working out on paper (and quite often not even there).
So my guess is: They will claim they want to use Nuclear and might even intend to do so. But in the end look at their balance sheets and risk calculation and go "nah, lets do coal/gas/oil". There probably will be some single public co-investment into a nuclear power plant which "happens" to also be government sponsored to keep up the pretense.
Launched in 2010 by Bill Gates, Melinda French Gates, and Warren Buffett, it was sold as a historic shift in philanthropy. Fast forward to 2026, and the data suggests it’s been more of a "Wealth Preservation Society" than a massive wealth redistribution event.
This will be just as trustworthy. We need laws - not merely rhetoric pledges !
Ta da! It's 3 Megapaks wired together with a transformer. Now that's innovation.
See? Without billionaires, who would save us from billionaires?
Tesla’s Megablock: Breaking the Transformer Bottleneck https://www.rebellionaire.com/post/tesla-megablock-transform...
That's why he wants to go into space (10x solar potential because you don't have a day/night cycle, no clouds, no dust/rain, no temperature loss, no orientation issues, and no atmosphere reducing solar).
To me it seems ridiculous, for one because sending 150kg to space costs about $500k, and this is about the weight of a solar installation that costs $800 to install and generates about $1000 worth of electricity across 20 years at utility wholesale prices.
But suppose it was cheaper and viable, and earth-electricity was indeed capped, you could argue (if you believe the hype) that developing AI is an existential arms-race objective for US/China.
But from what I've understood that's just not the case at all. Something like 170+ coal plants are scheduled to be decommissioned, and the average coal and gas plant runs at 40-50% of capacity, because wind/solar is eating their lunch (cheaper marginal $ per kWh). i.e. there is so little demand that these plants keep using less capacity and shutting down superfluous plants.
You'd think if experts believed electricity was going to be a bottleneck, that venture capital / AI companies, or even traditional capital, would be buying up plants or signing guaranteed-usage contracts. But it doesn't seem to be the case.
In fact, Nadella publicly stated that he has a large amount of hardware in inventory that has already been purchased but cannot be utilized due to insufficient energy.
Pledge my ass. It is either law mandating those massive datacenters absorb the cost with heavy penalties for non compliance or it is just BS talk (what it seems to be at the moment)
I can see how big tech is enthusiastic about freestyling this. Eh sorry I mean bear the cost
People are not voluntarily going to build things that make less profit.
It is a suckers bet assuming the unscrupulous will grow a conscience. =3
Take the case of Duke Energy in North Carolina, which illegally raised rates too much. Utilities prices are supposedly regulated but utilities work around this by simply moving costs to things they can charge whatever for (eg transmission costs vs energy costs).
The NC Court of Appeals ruled that Duke Energy's actions were illegal BUT there would be no refunds for customers [1], in part because lawmakers passed a law to allow them to do this retroactively [2]. Also, if Duke Energy had to repay customers they can simply raise prices to recoup those costs even though the money was improperly charged in the first place.
So consumers will keep paying for the infrastructure to connect up these data centers and will keep subsidizing the ongoing energy costs.
[1]: https://www.wcnc.com/article/news/local/no-refunds-for-duke-...
[2]: https://sustaincharlotte.org/press-release-nc-lawmakers-over...
That doesn't make sense because robots and AI won't have money to buy goods and services.
So don't worry, you'll have basic ~~income~~ soylent green.
Saying they’re going to pay for generation and transmission adds little. That’s already baked into the charges! It’s like saying they’re going to finally pay for the farmers to grow the produce and the drivers to get the produce to market when they buy apples--as though spontaneous generation and teleportation was ever an option.
They'd ask the utilities to make Gigawatts of energy available over the next two decades and the utilities would say "No problem, just sign here and agree to pay for us building out the grid to support that".
Then the AI companies said "No we only want to pay for energy if we actually use it, if we go bust or decide not to use the energy in a couple of years we want you to charge all the others consumers to recoup that cost".
No idea if that's addressed here. I'm assuming not.
It was never clear if that reflected uncertainty about future demand or of they just like shifting costs and risk onto other people whenever possible.
edit: the pledge references this problem, whether it actually solves it I don't know.
This mean retail consumers are paying less for electricity than what they would have paid if not for the pledge.
The general goal for utilities has been to pursue the next “thing” and work toward some sort of regulation to lock in demand, which can be used as a lever to seek price increases and consolidate.
If there’s margin to be had, the utilities will find a way, and prices will go up either way.