Interestingly, San Francisco has built no more of these AI datacenters and has seen a rate hike larger than that over the last few years. If we could at least get a few more datacenters that would be nice considering the rate hikes approved here.
Enron managed to mangle/free-marketize California's electricity system. Utilities have to purchase electricity at market prices on an exchange that Enron built.
Well I think the problem there is called “welcome to California.”
First of all, the grid is interconnected. Some random city building an AI datacenter could absolutely trigger price increases in a different part of the state. Second of all, Novva Data Centers is in fact building a $500m campus. In addition to all that is that the war against Iran is causing electricity prices to spike basically everywhere. PG&E is also currently modernizing its grid and doing wildfire hardening across the state. The solar subsidies has also meant that grid subsidization costs have been shifted onto non-solar customers.
I might argue that we already have data centers, we just call then Colo Facilities.
I love California and occasionally think about moving there. But the cost of living considerations bring me back to reality. Despite all its problems, it's difficult to leave Texas due to the low cost of living (and HEB!)
Hey, paying for blowing up towns is expensive! PG&E's gotta get the money from somewhere! /s
That's because San Francisco subsidizes the rest of the state, PG&E is a state-wide utility. San Francisco is attempting to run its own utility, but is meeting resistance from PG&E and the parts of the state SF subsidizes.