Breaking
BRDeath of player Bismarck in Natal: what is known and what remains to be clarifiedKRLions manager benches injured catcher for 1st time in postseasonCNParaguay's president impeached, vice president sworn in to take overCNHow North Korea turns child prodigies into crypto thievesINUS stocks: Wall street bounces back after hitting 18-month low as chipmakers rallyINIran distributes iodine pills amid US strike fearsSAMiddle East war update: Qeshm Island strike raises tensions; talks continueBRRoger Henri, composer and conductor who made a mark on Brazilian TV, diesCNNBA》Celtics reward Hornets for 6 consecutive losses! Tatum efficiently scored 34 points and achieved all-around statistics for the first time in team history.DEState crisis in South America: Public prosecutor orders arrest of Paraguay's ex-President PeñaBRDeath of player Bismarck in Natal: what is known and what remains to be clarifiedKRLions manager benches injured catcher for 1st time in postseasonCNParaguay's president impeached, vice president sworn in to take overCNHow North Korea turns child prodigies into crypto thievesINUS stocks: Wall street bounces back after hitting 18-month low as chipmakers rallyINIran distributes iodine pills amid US strike fearsSAMiddle East war update: Qeshm Island strike raises tensions; talks continueBRRoger Henri, composer and conductor who made a mark on Brazilian TV, diesCNNBA》Celtics reward Hornets for 6 consecutive losses! Tatum efficiently scored 34 points and achieved all-around statistics for the first time in team history.DEState crisis in South America: Public prosecutor orders arrest of Paraguay's ex-President Peña
BackThe Washington Post claims, “Data centers have little impact on residential power rates.”
The Washington Post claims, “Data centers have little impact on residential power rates.”
Developing
연합뉴스14 minutes agoTech3 min readSouth KoreaView original

The Washington Post claims, “Data centers have little impact on residential power rates.”

While backlash against data centers is an issue in the U.S. midterm elections, the Washington Post publishes an article on an unverified academic paper.

Quick Look

  • The Washington Post published an article in an unverified preprint from academia that found that data centers only have a 4% impact on residential electricity rate increases.
  • It has attracted attention due to a report by WP, owned by Amazon founder Jeff Bezos, and is attracting attention in conjunction with the situation where data center regulation has become an issue in the U.S. midterm elections.

AI-generated summary

Why It Matters

In the recent U.S. midterm elections, Democratic candidates who pledged to regulate or review data center construction won a large number of victories, and 40 out of 41 data center-related referendums ended in restricting or banning new construction. As a result, debate over the impact of data centers on electricity bills has emerged.

Font size

In a situation where residents' backlash against data centers has emerged as an issue during the recent U.S. midterm elections, the American daily Washington Post (WP) has drawn attention by publishing an article introducing the conclusion of a preprint (a draft of a paper released in an unreviewed state before formal publication) that "the impact of data centers on consumer electricity rate increases is minimal."

It is unusual for a research conclusion published in a preprint that has not been verified by the academic community, such as peer review, to be reported in an article and introduced to a credible media outlet as if its credibility has been proven.

The owner of WP, which published this article, is Amazon founder Jeff Bezos.

Amazon generated 63% of its operating profit (as of the third quarter of this year) from Amazon Web Services (AWS), a cloud business based on data centers.

On the 6th (local time), WP published an article titled "Everyone blames data centers for high electricity bills. But these are the real reasons," with the subtitle "Data centers have had only a small impact on residential electricity bills."

At the same time, he introduced the contents of a preprint (draft of a paper before submission to an academic journal) co-authored by three people, including Vishrut Rana and Sergei Neteshine of the Wharton School of the University of Pennsylvania, and Christian Kopps of Harvard Business School.

This preprint was posted on a public site for preprints in the social sciences called ‘Social Science Research Network’ (SSRN). The writing date is September 30th, the first posting date is the 9th of last month, and the most recent revision date is the 12th of last month.

The title of the preprint is “The Cost of Intelligence: The Impact of AI Data Centers on U.S. Electricity Bills.”

As a result of analyzing the impact of data centers on U.S. electricity rates from 2020 to 2025, the authors of the paper argued that the impact of data centers accounts for only 4% of the increase in residential electricity rates borne by the general public.

The paper authors assessed this as “significant but small.”

“Overall, our findings suggest that existing discourse about the impact of data centers on electricity rates is exaggerated and that the average effect on residential electricity rates is small and concentrated among co-location developers and specific utilities,” the study authors wrote.

However, 15% of the increase in industrial electricity rates was analyzed to be due to data centers, which was larger.

WP introduced the contents of this preprint and reported co-author Professor Netesine's comment, "It was somewhat surprising even to me."

WP said, "Multiple studies by several researchers and institutions have not found a strong correlation between data centers and the overall trend of U.S. electricity rates in recent years. According to another analysis by researchers at the Massachusetts Institute of Technology (MIT) earlier this year, the average increase in electricity rates for residential customers due to data centers between 2010 and 2024 was only 2.1%."

'Another analysis by MIT researchers' cited by WP also did not undergo academic verification as a source, and was a 'working paper' (research report) posted on the website of MIT's Energy and Environmental Policy Research Institute (CEEPR) in June of this year.

In the recent U.S. midterm elections, Democratic candidates who pledged to regulate or review data center construction won a large number of victories.

In a midterm election exit poll commissioned by a consortium of major U.S. media outlets, including the Associated Press, 76% of those surveyed opposed the construction of a new data center in their area, and 56% said their stance on data centers was a "key or major" factor when voting.

Negative opinions about data centers were more evident among those who said they voted for Democratic candidates.

Of the 41 data center-related referendums held across the U.S. simultaneously with the midterm elections, 40, excluding one in Harwood, North Dakota, concluded that local voters would limit or ban new construction.

What to Watch

AI outlook — possibilities, not facts

  • Data center-related regulatory discussions will continue in each U.S. state.

    Likely · Within months

  • Additional research on data center electricity bill impacts to be released

    Possible · Within months

Open Questions

  • Whether preprint research on data center electricity bill impacts will be peer-reviewed for publication in a formal journal
  • Will strengthened data center regulations actually lead to lower electricity rates?
  • The reason why the impact of data centers was higher at 15% of the increase in industrial electricity rates

Related Topics

This article was originally published by 연합뉴스.

Related Stories

Big Tech faced repercussions for being close to Trump... Republicans also say, “Let’s keep our distance.”
Developing·

Big Tech faced repercussions for being close to Trump... Republicans also say, “Let’s keep our distance.”

After losing in the U.S. midterm elections, Silicon Valley's big tech companies are reorganizing their political strategies by recruiting Democratic Party members and accepting regulations. There is criticism within the Republican Party that its close relationship with Big Tech was the cause of its defeat, and the Democratic Party announced its plan to request testimony and investigate executives from technology companies after the inauguration of the new Congress.

연합뉴스
3 min read
China's Unitree robot goes to oil fields and refineries... Joint venture with state-owned oil and AI companies
Tech·

China's Unitree robot goes to oil fields and refineries... Joint venture with state-owned oil and AI companies

Chinese robotics company Unitree is seeking to establish an industrial embodied intelligence robot joint venture with CNPC's Kunlun Manufacturing and Beijing AI company Panje Intelligence. The stake is 60% owned by Kunlun Manufacturing and 20% each by Unitree and Panje Intelligence, and will be used for patrolling and emergency response at oil and gas production facilities and refineries.

연합뉴스
3 min read
Microsoft suspends lease of Oracle data center... Cloud partnership revisited
Developing·

Microsoft suspends lease of Oracle data center... Cloud partnership revisited

Microsoft is completely reviewing its lease agreement for Oracle data center computing resources. This is because the usability has decreased due to the installation of an old Nvidia chip. Oracle responded by saying that demand for older chips was still strong, and on news of the MS contract review, Oracle's stock price plunged more than 5% during the day, but ended on a strong note.

연합뉴스
2 min read
Mirae Asset says data breaches exposed customer, employee information
Urgent·

Mirae Asset says data breaches exposed customer, employee information

Mirae Asset Securities Co. reported cyberattacks on Wednesday and Thursday that leaked account numbers of some 3,800 customers and personal information of over 35,000 current, former employees and contractors. The South Korean brokerage blocked affected access routes and reported the incident to the Financial Services Commission, Financial Supervisory Service, and Personal Information Protection Commission.

Yonhap News
1 min read
Open AI CFO "continues to invest in AI data centers" despite the U.S. midterm election results
Developing·

Open AI CFO "continues to invest in AI data centers" despite the U.S. midterm election results

Open AI CFO Sarah Pryor said that despite the public opposition to data centers confirmed in the U.S. midterm elections, the demand for AI is real and infrastructure investment must continue. OpenAI achieved 1.2 billion weekly active users in the third quarter, doubled corporate sales, continued to conduct an investment round of $11 billion based on a corporate value of $1.25 trillion, and is considering listing next year.

연합뉴스
2 min read
More on this topicdata center