Will Maryland's Utility Bills Increase $1.6B to Support Other States' Datacenters?

To upgrade its grid for data centers, PJM Interconnection (which serves 13 states) plans to spend $22 billion — and charge nearly $2 billion of that to customers in Maryland, argues Maryland's Office of People's Counsel. The money "will be recovered in rates for decades" and "drive up Maryland customer bills by $1.6 billion over the next ten years alone," they said Friday, announcing an official complaint filed with America's Federal Energy Regulatory Commission.

Extra demand is expected from Ohio, Pennsylvania, and Illinois "where demands driven by data centers are projected to grow substantially by 2036," they explain. But that means that Maryland customers "are subsidizing data center-driven transmission buildout by virtue of geographic proximity..." Tom's Hardware explains:

That means an extra $823 million for residential (approx. $345 per customer), $146 million for commercial (approx. $673 per customer), and $629 million for industrial customers (approx. $15,074 per customer)... "Maryland customers have neither caused the need for these billions in new transmission projects nor will they meaningfully benefit from them," [according to Maryland People's Counsel David S. Lapp]....

This is one of the biggest reasons why many AI hyperscalers are facing pushback from the communities where they intend to place their data centers. At the moment, around 69 jurisdictions have passed some sort of moratorium on projects like these, and a survey has shown that nearly half of Americans do not want a data center in their neighborhood. Debates around these projects are passionate, with a few cases turning violent and even resulting in shootings (thankfully, without any casualties), especially as many feel that the construction of these power-hungry assets is threatening their lifestyles and quality of life.

Thanks to long-time Slashdot reader noshellswill for sharing the news.