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Big Tech data centers are driving up power bills at America’s Rust Belt factories
Data-center demand pushed PJM capacity prices up 1,038%, and manufacturers say the higher charges are squeezing margins and forcing them to seek alternatives.
- Rising power costs threaten Rust Belt manufacturers as PJM Interconnection capacity charges surged 1,038% to $329.17 per megawatt-day, driven primarily by power-hungry data centers serving the artificial intelligence industry.
- Data centers, which can consume as much electricity as a mid-sized town, are proliferating across the region, creating demand that outpaces supply, as PJM spokesperson Jeff Shields noted these facilities "can be built faster than the generation needed to serve them."
- Manufacturers like Belden Brick Company saw monthly capacity charges jump from $1,600 to $12,000, while Plaskolite's annual costs rose to $1.2 million from $200,000; company president Brad Belden said, "That capacity charge just jumped off the page."
- Facing thin margins, firms are exploring alternatives to maintain competitiveness, including shifting production to the "graveyard shift" or installing onsite power generation, with Tosoh SMD director John Holeman stating, "We're trying to be as creative as possible just to maintain competitiveness."
- While the White House touts a "ratepayer protection pledge" to support manufacturers, regulators are considering new transmission charges for onsite power, which advocates warn could inadvertently penalize smaller factories alongside tech giants like Amazon and Meta.
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15 Articles
Tulsa World+3 Reposted by 3 other sources
Big Tech data centers are driving up power bills at America's Rust Belt factories
Federal, state and local governments responding to consumer anger and grid-stability concerns are pushing Big Tech to pay more for their expected demand.
·Tulsa, United States
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AI Boom Pushes Power Bills Higher, Leaving America’s Rust Belt Manufacturers Under Growing Pressure
The rapid expansion of artificial intelligence is creating unprecedented demand for electricity across the United States, but the benefits of the AI revolution are coming ... The post AI Boom Pushes Power Bills Higher, Leaving America’s Rust Belt Manufacturers Under Growing Pressure first appeared on [your]NEWS.
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Total News Sources15
Leaning Left3Leaning Right3Center5Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 27%
C 46%
R 27%
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