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The Indicator from Planet Money

All these data centers are gonna fry my electric bill … right?

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 3 February 2026

⏱️ 9 minutes

🧾️ Download transcript

Summary

Data centers are getting a lot of heat right now. There’s neighborhood pushback against them for water usage and environmental concerns, and some politicians on both sides of the aisle aren’t fans for the same reasons. There’s also fear that they could drive up the cost of electricity bills. 

But that last bit isn’t set in stone. 

Data center electric bill upcharge is not a guarantee. In fact, it is even possible for data centers to cause power bills to go down. Today on the show: the future of your power bill.

Related episodes: 
No AI data centers in my backyard! 
What AI data centers are doing to your electric bill

For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org. Fact-checking by Sierra Juarez. Music by Drop Electric. Find us: TikTok, Instagram, Facebook, Newsletter.  

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Transcript

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0:00.0

NPR.

0:02.0

Data centers are getting a lot of heat right now.

0:15.0

There are protests against them, cities voting to keep them out.

0:19.0

You even have both Bernie Sanders and Ron DeSantis speaking

0:22.6

out against data centers. Two men, I'm pretty sure, wouldn't even agree that, you know,

0:27.7

water is wet. You know, data centers, they are essentially warehouses packed with computers

0:33.8

that make cloud computing and AI possible. And there are a lot of different reasons people have for opposing them, like concerns about

0:41.0

AI and worries about the tons of water they use.

0:44.3

And then there's the fear that data centers will lead to higher electric bills.

0:48.5

Electricity prices are up about 7% year over year, way higher than overall inflation.

0:54.6

And that's driven in part by this flurry of power-hungry data centers.

0:59.4

And the concern is that all the new centers coming online will only drive electric rates even higher.

1:05.3

But that is not inevitable.

1:08.1

This data center electric bill upcharge is not a guarantee. In fact, it is even possible

1:13.3

for data centers to cause power bills to go down. This is the indicator from Planet Money. I'm

1:18.9

Waylon Wong. And I'm Stephen Besaha. Today on the show, we look at three possible futures for

1:24.4

your power bill, futures where power companies over-prepared for AI, under-prepair, and the Goldilocks

1:30.1

scenario where everything goes right and your electric bill could actually get cheaper.

1:38.7

To lay out our three futures is Greg Upton.

1:42.2

He's the executive director for Louisiana State University's

1:45.1

Center for Energy Studies. There's no reason that inflation-adjusted electricity prices

1:51.7

have to increase over time. It sounds like you're not a electric price data center doomsayer.

...

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