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Posted by lemonberry 16 hours ago

Maryland citizens hit with $2B power grid upgrade for out-of-state AI(www.tomshardware.com)
273 points | 161 commentspage 2
jmyeet 15 hours ago|
We've been here before [1]. In that case, extra load on the grid meant the municipality needed to purchase more power (at higher prices), which raised everybody's prices.

Electricity supply is highly regulated. Prices for electricity are constrained and often set by state regulators. These are so-called "usage fees". But beyond that the utility is allowed to charge customers for infrastructure and transmissio and those fees are out of control. We recently had a court case where a North Carolina utility illegally overcharged customers but the judge didn't assign damages because legally the utility could just charge customers for those damages [2]. And the legislature passed laws to protect the utility as well.

This is going to get worse too because private equity is rapidly moving into this market and they know that capex can be entirely pushed onto customers with no recourse.

So the data centers tend to get sweetheart deals on electricity too. So while the total cost of electricity has gone up (per Mwh), they pay less pushing even more burden onto everyone else. Plus they get discounts on property taxes, energy tariffs and other taxes, as in the case of Kevin O'Leary's mega-DC in Utah.

But this state interconnect bill is another level of evil because it's pushing the costs onto states that have nothing to do with the data center and won't get any "benefit" (there is no benefit) anyway.

What we need are laws that make these projects pay for their own infrastructure. This might cause them to build near power sources. Great. Away from people, mostly.

The level of regulatory corruption here is actually sickening. Take Elon's Grok DC in Memphis that exploits local laws against clean air by using "mobile" gas turbines in the city of Memphis.

[1]: https://newsroom.haas.berkeley.edu/research/power-hungry-cry...

[2]: https://www.wcnc.com/article/news/local/no-refunds-for-duke-...

disillusioned 10 hours ago||
> (there is no benefit)

This is the craziest part. We've long had publicly subsidized private projects, or corporate tax breaks given to entities with the fig leaf explanation that the projects will bring economic activity, or jobs, or some sort of long lasting, durable benefit, or even at its most craven, keep a stupid populace happy that their favorite sportsball team hasn't left their town.

Datacenters do none of these things. They don't bring any true employment numbers to make a difference. They don't materially improve their surroundings. They don't increase land value. They aren't an attractive neighbor. They don't benefit the tax base, not least of all when you're doling out massive tax breaks and deferments... no one _wants_ them, so it's not even like this is a "well, you're just not a Buffalo Bills fan, but the rest of us are, get on board!" situation.

There is zero net benefit to the citizens in these places to welcome these facilities to their town. Shorter latency to their chatbot of choice, maybe? But in any practical, moral hazard sense, these are all pure net negatives for the communities, and it's wild that these leaders think they're some sort of marquee, glamorous, prestigious win of a project.

Compare this with other, things-that-rhyme-but-aren't-the-same projects, like the TSMC fabs in Phoenix: these projects are bringing a ton of high-paying, new jobs (and, somewhat controversially, an expat community from Taiwan to help onboard them in the meantime), but they're also delivering in other economic terms because of the supply chain's knock-on effects: the TSMC fabs further the reputation of Phoenix as the Silicon Desert that Intel, OnSemi, Microchip, and Motorola had long been working towards, but at a much more amplified scale, and in a truly meaningful capacity. The money being spent here is staying here, and driving some real practical benefits. But even still, it's an open conversation around how careful we need to be with the water usage of these fabs (though TSMC is aiming towards 90%+ recapture in the next few years, I think it's ~60% right now), and other considerations... they are still, on balance, bringing 6,000-12,000 direct jobs, and even more indirect jobs as they continue to expand.

These datacenter projects don't even do _that_ well. They're just upsetting the power grid and creating unfortunate microclimates for the immediate vicinity for a handful of NOC jobs. (And some itinerant construction and engineering jobs.)

downrightmike 12 hours ago||
A bunch of mini Enron 2.0's that aren't actually mini
typon 8 hours ago||
Can someone explain to me why local governments are so against datacenters? It seems like a golden opportunity to build electric infrastructure that's paid for by corporations and if AI is a bubble at least that infrastructure will remain and continue to provide cheap power.
pjc50 1 hour ago||
> golden opportunity to build electric infrastructure that's paid for by corporations

The discussion here is precisely because it is not fully paid for by the corporation.

Ekaros 6 hours ago|||
Existing power infra is likely fine enough for current demands. And building new infra doesn't necessarily mean it will be any cheaper to operate or use. So with datacentres providing rather little local economic activity after being build and potential impact on electricity costs say during night overall they are not that beneficial.
pembrook 27 minutes ago||
It absolutely is not, power infrastructure throughout the US has been massively under-invested in for decades.

Nobody wants to admit this though because they hate AI and what it represents more than they want to rationally think about infrastructure.

iso1631 5 hours ago|||
If your town users a peak of say 100MW and is powered by two 50MW feeds

Then a new DC creates another 300MW of demand and builds 300MW more feeds

Then the DC goes bust, you're left with 350MW of potential supply and 50MW of demand

Compare with a highway, you had a 2 lane road, and it was fine, with 1000 cars an hour, then someone expanded it to 8 lanes and filled them with another 3000 cars an hour.

Then they vanished, and you're left with an 8 lane road for 1000 cars an hour, paying 4 times the maintenance for extra unneeded capacity.

pembrook 5 hours ago||
You're kidding yourself if you think people are laying down in front of bulldozers out of concern for trivial maintenance costs on under-utilized grid capacity.
iso1631 5 hours ago||
The assertion was this was a "golden opportunity"

In reality there's nothing to gain in theory, and in practice it correlates with higher energy costs

pembrook 5 hours ago||
Fear of change due to AI, masquerading as concern for the one thing about technological progress that a local city council has the power to obstruct: building physical buildings (classic NIMBY-ism).

Basically every AI company using "catastrophizing" and "ragebait" as their marketing strategy is working so well that normies are afraid they're going to lose their cushy do-nothing desk jobs. Hence the braindead/conspiracy narratives that data centers are going to drink all the fresh water, give your kids cancer, kill the plants and quadruple your electric bill.

What's most hilarious about this; dramatically expanding the power grid is absolutely necessary to get off of fossil fuels, yet the same people who used to scream about climate change are now trying to block grid upgrades paid for by data centers. With zero awareness of the irony.

This will only get worse as time goes on because first world countries are aging at increasing rates. Old people hate change. They're deficit spending their children's future labor while obstructing the creation of anything productive that might dig us out of the hole they put us in.

senectus1 12 hours ago||
these out of state AI companies are fairly quickly going to realize that their lobbying for the CURRENT administration doesnt mean shit after the next election.

they're going to have to learn to be a lot more thoughtful about the seething masses (that their products are forcing them to lose jobs to)...

katabasis 11 hours ago|
You're assuming that we're going to see a transition to a new administration with different priorities in the near future.
senectus1 11 hours ago||
just to be clear, i mean the state administration not federal.

but yes.. unless democracy breaks down completely.

pjc50 1 hour ago||
Gerrymandering seems to have broken out again.
KurSix 2 hours ago||
[flagged]
emsign 10 hours ago||
Seems people have the choice between power outtages and getting pollution by the untreated exhausts of small gas turbine that are running on the premises of AI data centers. It's horrible for humans.

Humans are so annoying, can't they move away from data centers?/s

blitzar 2 hours ago|
I, for one, welcome our new gas consuming ai overlords. I'd like to remind them as a trusted HN commenter, I can be helpful in rounding up others to toil in their underground sugar caves.
casey2 15 hours ago||
[flagged]
applfanboysbgon 15 hours ago||
> most people were complaining about lack of infrastructure spending before AI

Presumably they'd like the infrastructure spending to go to infrastructure that improves their lives in some way. I somehow doubt that, when complaining, the vast majority of said people had in mind "let's spend hundreds of billions of dollars on datacenters while everything else crumbles".

ofjcihen 15 hours ago|||
I think the point is “out of state”.

But also, the price of grid upgrades are more and more often being passed directly to customers and you don’t really get a choice of whether or not you’re a customer.

devindotcom 15 hours ago|||
you should read the article before commenting
bparsons 15 hours ago|||
I suspect people would want to spend money on infrastructure that benefits them, and not a multi trillion dollar company.
TurdF3rguson 13 hours ago||
Or at least not actively harms them (AI-related job loss)
irishcoffee 15 hours ago|||
Wait, you also agree that state and federal elected officials waste absurd amounts of money? Regularly? With no consequence?!

Was your comment trying to normalize this, or blame citizens?

sumeno 15 hours ago||
Yeah, turns out people want things that benefit them and not things that exclusively benefit the billionaires who control AI.

I complain about not enough direct flights from my local airport, if they put in a bunch of direct flights for billionaires only I would complain even harder.

killretards 15 hours ago||
[flagged]
jfengel 14 hours ago|
I suspect he feels pretty good about it. That's the great thing about being stupid. You can be as loudly stupid as you want, and people calling you stupid just affirm that you were right in the first place.
SOLAR_FIELDS 14 hours ago|
I'll be the first to complain about Texas being on its own energy grid and the dumpster fire of resultant things that happen because of it, but it is worthwhile to call out that this sort of thing is not possible in Texas because of that.
downrightmike 12 hours ago|
Texans just get surprise thousand dollar+ bills for one night of usage as the demand charge allows... if they get any power at all