What AI data centers are doing to your electric bill

Planet Money discusses the rising electricity prices for consumers, focusing on Ken and Carol, a retired couple in Ohio, as an example. The podcast investigates the impact of data centers and AI development on electricity costs, exploring the roles of local distribution (AEP Ohio), long-distance transmission, and power generation. AEP Ohio has implemented new rules for data centers to ensure they cover infrastructure costs, but the primary driver of increased prices is the generation market, particularly the capacity market managed by PJM. The capacity market, designed to ensure future power supply, is facing challenges due to increased demand from data centers, leading to higher costs that are passed on to consumers, even though it may not be effectively incentivizing new power plant construction.