this post was submitted on 05 Mar 2026
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Depends on which side of the Rockies you're on. Don't forget, only 80% of the USA is on the East side; the economics are totally different for the 20% on the West Coast. As your own source says:
Maybe you'd say that that's unfair; they don't have many datacenters and additionally California's economy operates on a different scale than most of the rest of the USA. Additionally, California's recent world-famous wildfires are partially caused by the utilities, who then have to pay to fix it up:
Oregon does have lots of datacenters, though, and our wildfire rates are within historical norms. What's driving electricity prices in Oregon? According to Oregon's state government:
Why is the underlying cost of power rising, though? They go on to explain indirectly:
They aren't worried about data centers; instead, they are spending rhetorical points on the most politically-inconvenient cause of rising costs, which is retiring old coal plants in the name of decarbonization. Don't get me wrong, I support switching to more sustainable and less harmful production, but I also think that my state government is being a little too quick to insist that it's not part of the cost of electricity.
Perhaps it is reasonable to say that power price rises on the East Coast are driven by datacenter buildouts. I would be interested in numbers that go back about two decades and study Virginia or the Carolinas specifically; this trend could go back to the beginning with AWS's
us-east-1in 2006.PS: Previously, on Awful, looking at Omaha, Nebraska specifically, I noted that there is a nearby abandoned nuclear power plant. There's a nearby abandoned nuclear campus here, too! Quoting from one of WP's articles on Satsop:
Whoops! Starting to notice a pattern here. It's well-known that the USA has a strong NIMBY anti-nuclear sentiment; perhaps cancelling nuclear plants half a century ago is part of why we have "rising power costs" today? We may never know~
I think you're glossing over how interconnected the grid is. California does not generate it's own power, it buys a significant amount from Oregon. So if data centers are being built in Oregon, that will impact costs in California. For instance, there's a DC link from the dams on the Columbia in eastern oregon that goes directly to southern California, and that area is now absolutely littered with data centers. Like a whole city of them right by the dams. They are there specifically for the cheap land and cheap hydro energy. And they use A LOT. Obviously I'm not packing any numbers here but I also wasnt born yesterday. Zero chance that all that load, there specifically, isn't impacting prices.