Data centers’ energy demand threatens Trump’s “Made in America” plan
Summary
Growing energy use by data centers is causing electricity prices to rise sharply for factories in the U.S. Rust Belt, especially steel and brick makers. These higher energy costs threaten President Donald Trump’s plan to boost American manufacturing by reducing factory profits and increasing operating expenses.Key Facts
- Data centers, especially those for AI, are increasing electricity demand in the 13-state PJM Interconnection region.
- Factory electricity bills have risen faster than bills for homes and other businesses in this region.
- The Belden Brick Company’s monthly electricity bill increased from $1,600 to $12,000.
- Steel manufacturers in the area are paying tens of millions of dollars more per year in electricity costs.
- Electricity makes up 20% to 40% of the cost to produce steel, with electric furnaces using 40 to 200 megawatts each.
- Data centers need large amounts of steel, using about 1 million tons per year, but their energy use also raises steelmakers’ costs.
- PJM forecasts electricity demand will exceed supply by 6.6 gigawatts starting in 2027, about the output of six nuclear power plants.
- The Trump administration has pushed tech companies to help pay for more power infrastructure but faces challenges due to limits on building new wind and solar projects.
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