Governor Kathy Hochul recently signed an executive order imposing a one-year ban on the construction of hyperscale data centers in New York. The move seeks to prevent further strain on utility bills and natural resources, marking the first such state-level moratorium. While Wright, a former fracking executive, blamed New York's energy costs on Democratic climate policies, his assessment of data centers finds little support among industry experts.
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Energy Secretary Claims Data Centers Lower Prices Despite Contrary Data
Energy Secretary Chris Wright on Wednesday labeled data centers the premier tool for curbing rising electricity costs, directly contradicting a recent New York moratorium intended to manage the massive power demand created by such facilities. His remarks come as grid operators warn that data centers are driving sharp utility hikes.
Data from PJM, the nation's largest electric grid operator, suggests the opposite of Wright’s claim. Following an electricity auction, PJM reported that data center growth contributed to a $6.3 billion increase in consumer costs for the 2028-29 period. Monitoring Analytics, the grid's independent monitor, noted that since 2024, these auctions have added $29 billion in costs across the operator's 13-state region. The Natural Resources Defense Council estimates that this expansion could eventually raise average household bills by $70 per month.
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