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Concealed Republican > Blog > News > Chatbots don’t run on magic. They run on your money.
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Chatbots don’t run on magic. They run on your money.

Jim Taft
Last updated: March 2, 2026 2:03 pm
By Jim Taft 16 Min Read
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Chatbots don’t run on magic. They run on your money.
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Imagine someone walks into your town with a proposition: Rezone large swaths of residential and farmland. Hand out tax breaks. Let us build ugly, noisy facilities for chatbots — facilities that will devour nearly a quarter of the power supply.

Then, before you run him out of the room, he adds a final promise: Do not worry. We will pay our own way.

Argue about the projections if you want. Do not tell the public they will not pay more for data centers. They already do.

That is the rope-a-dope Americans are supposed to accept from the government-tech oligopoly, even as politicians insist that data centers will not cost the public a dime.

Sensing a growing backlash against the data-slop colonization of rural America, President Trump promised during the State of the Union that every data center company will pay its own way. Awareness of the problem helps. The president’s pledge does not.

Facts on the ground point in the opposite direction: consumers already pay for data centers, the economics make “paying their own way” implausible at scale, and the industry fights efforts to put that promise into law.

The scope of the problem

The hyperscale build-out being stacked on top of roughly 4,000 existing facilities is not a “burden” on the grid. It is an industrial-scale demand shock.

MIT Technology Review reports that AI alone could soon consume as much electricity as 22% of all U.S. households. Boston Consulting Group projects data center energy needs of up to 1,050 terawatt-hours annually by 2030 — about 120 gigawatts on average. That figure exceeds current U.S. nuclear capacity by roughly 23%.

To put it in plain terms, the United States has about 97 gigawatts of nuclear capacity across 94 reactors. If the high end of OpenAI’s hyperscale ambitions materializes, those facilities alone would require roughly 36% of total U.S. nuclear capacity.

Now scale it out. Clearview estimates that if the 680 planned data centers get built and become operational, they would require the energy equivalent of 186 large nuclear power plants.

That should end the fantasy that these companies can “pay their own way” while drowning in debt, burning cash, and chasing thin margins.

These are not last decade’s data centers, either. Bloomberg reports that only 10% of facilities today draw more than 50 megawatts. Over the next decade, the average new facility will draw well over 100 megawatts. Nearly a quarter will exceed 500 megawatts, and a few will top 1 gigawatt.

Electricity is only the first bill. This demand shock forces major grid upgrades: transmission lines, transformers, substations, and capacity expansions. Utilities do not eat those costs. They pass them on to taxpayers — that is, us.

Wood Mackenzie estimates that AI-driven build-outs will push transformer demand beyond supply by about 30% this year, driving costs up and delaying projects. Consumers will pay for that, too.

RELATED: How data centers could spark the next populist revolt

Photo by Jim West/UCG/Universal Images Group via Getty Images

We already pay for data centers

Consumers already pay. Any serious fix starts with admitting it.

Yet Interior Secretary Doug Burgum has the nerve to tell Americans that nobody has paid higher prices because of data centers.

Grid operators say otherwise.

Bloomberg reports that in areas within 50 miles of significant data center activity, wholesale prices have risen by as much as 267% over five years, with more than 70% of recorded price spikes occurring near that activity. Dominion, the largest utility in Virginia — home to “Data Center Alley” — cited data center demand as a factor in proposing a base-rate increase that would add $8.51 a month to typical residential bills in 2026 and another $2 a month in 2027. That comes after rates already surged 13%.

Then look at PJM, the nation’s largest grid. Monitoring Analytics, PJM’s independent market monitor, says consumers will pay $16.6 billion to secure future power supplies from 2025 through 2027, with about 90% of that bill tied to projected data center demand. Monitoring Analytics called it a “massive wealth transfer” from consumers to the data center industry.

Costs spread across state lines. Maryland transmission infrastructure helps serve Northern Virginia’s data centers. In Baltimore, some residents have seen steep bill increases over three years, with additional increases anticipated starting mid-2026. Across the PJM region, capacity charges spiked 833% for the 2025-2026 period as supply struggled to keep up with these behemoths.

Texas faces its own version. ERCOT expects data center demand to exceed 22,000 megawatts by 2030, which could push wholesale rates up 22% or more, even before population growth enters the equation.

Argue about the projections if you want. Do not tell the public they will not pay more for data centers. They already do.

That reality explains why the industry resists any effort to put teeth behind its “we will pay our own way” pledge. Oklahoma state Rep. Jim Shaw (R) introduced HB 3724, which would have required data centers to pay their own way. Every Republican on the committee voted it down.

So the next time the pitch arrives — that you will not pay a dime extra once the facilities go live — treat it as marketing, not math.

Do not trust. Only verify.



Read the full article here

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