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QueerDuck

(850 posts)
3. Historically, utilities are allowed to "socialize" the costs of new infrastructure...
Wed Dec 10, 2025, 01:32 PM
Dec 10

such as power plants, transmission lines, substations, etc across all ratepayers, based on the assumption that "everyone benefits" from grid improvements.

The complex rules for allocating costs, often involving both federal and state regulatory processes, can obscure which investments are made specifically for data centers, making it difficult to track the cost causation.

So while data centers do pay for the energy they consume (based on usage), the crucial issue is who pays for the massive, initial infrastructure upgrades needed to deliver that power. In many regions, the existing residential customers are shouldering much of that financial burden

It's my understanding that Ohio has (or will) pass regulations requiring data centers to pay for their own grid upgrades. And along that same philosophy, Oregon and Minnesota have passed laws to create separate billing categories or ensure data center grid costs remain off household bills.

So it makes sense that data centers will seek out states that have weak regulations on matters of this type.

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