Stop Blaming Data Centers. Start Fixing Government-Owned Utilities.

Originally published on Substack. 

The loudest voices attacking data centers today are the same ones who’ve ignored America’s crumbling electric grid for decades. Conveniently, they’ve found a shiny distraction: AI, cloud computing, and high-density data centers.

But the truth—confirmed by federal research, independent analysts, and basic economics—is that data centers are not driving higher electricity prices. Government-owned and government-regulated utilities are.

If policymakers spent half as much time fixing their own failures as they spend blaming innovators, Americans would already have lower bills.

This isn’t a tech problem. It’s a government problem.
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And until we acknowledge that reality, electricity prices will continue rising no matter how many data centers get built—or blocked.

​Data Centers Are Now Core Infrastructure

The modern economy runs on data centers just like past generations ran on railroads and highways. Without advanced compute power, entire industries—from health care and defense to logistics and manufacturing—grind to a halt.

The Wall Street Journal calls this boom a “gold rush” for construction workers, with higher wages and massive demand for skilled labor as the industry faces a shortage of nearly 439,000 workers. That doesn’t happen in industries declining or draining the economy. It happens in sectors creating real value.

Small towns know this. Fox Business reports that Meta’s facility in Social Circle, Georgia is transforming the local tax base and creating high-paying jobs for families who haven’t seen this kind of opportunity in decades.

These are not burdens—they are engines of prosperity.

Electricity Prices Are Rising Because the Grid is Government-Run, Not Because of Data Centers

Let’s cut through the noise: electricity bills are rising because government-owned and government-regulated utilities have under-invested in infrastructure, mispriced risk, and politicized energy decisions for decades.

Data centers didn’t cause this. But they’re getting the blame. According to PBS, electricity bills rose more than 5% year-over-year, but the causes are far more complex than AI demand.

A major Department of Energy–commissioned report by Lawrence Berkeley National Laboratory and The Brattle Group examined price trends from 2019–2024. The conclusion is devastating for the anti–data center narrative:

Data centers were not a driver of higher electricity prices. Government failures were. Rates increased because of:

• Aging, government-owned grid infrastructure that hasn’t been upgraded
• Extreme weather and wildfire recovery costs the public sector didn’t prepare for
• Volatile natural gas prices because regulators distort markets
• Inflation and supply chain failures tied to bad policy

And here’s the kicker: states with heavy data center growth often saw inflation-adjusted electricity price declines because large, predictable loads help spread fixed costs more efficiently.

Both The Washington Post and Politico reported the same truth: the grid is expensive because we let government run it.

Even Energy Secretary Chris Wright told PoliticoPro that data centers will actually lower prices over time by improving utilization of existing grid assets.

You want lower energy prices? Reform the grid. You want reliability? Privatize it.

Water Use: Data Centers Innovate, Government Doesn’t

Water panic headlines make for great clickbait, but they crumble fast.

Modern facilities increasingly rely on closed-loop cooling, air-cooling systems, and recycled water technologies. Some are moving toward net-positive water practices.

Meanwhile, government-run water systems leak billions of gallons a year because pipes haven’t been replaced in half a century. Yet data centers get the blame? Please.

If the public sector ran its water systems with even half the efficiency of the private sector, we wouldn’t be having this conversation.

Privatize Utility Districts—Or Expect Higher Bills Forever

Here’s the uncomfortable truth political leaders won’t say aloud:

America’s grid problems are rooted in government ownership, government regulation, and government distortion—not private innovation.

Public utility districts, municipal utilities, state-controlled grids, and politically run transmission authorities are failing precisely because they are insulated from competition. They misallocate capital, delay maintenance, ignore price signals, and rely on ratepayers to bail out mistakes.

It’s time to say what free-market economists have known for decades: Privatizing utility districts and introducing real competition would do more to cut electricity prices than any government program ever will.

Let private operators price risk correctly. Let them compete on efficiency. Let them build modern transmission lines without political bottlenecks.

Data centers would thrive in this environment—and so would consumers.

Bottom Line

Here’s what the evidence makes undeniable:

• Data centers do not raise electricity prices—government mismanagement does.
• They strengthen the grid and help lower long-run costs.
• They recycle water and outperform public systems in efficiency and stewardship.
• They revitalize local economies with high-wage, stable jobs.
• They are essential infrastructure powering America’s digital and economic future.
• And yes—privatizing utility districts is the reform that could finally deliver abundant, affordable power.

If America wants a competitive future, the path is clear: Build more data centers. Privatize failing government utilities. Let markets work.

Call to Action

If this matters to you—if you’re tired of government mistakes being blamed on the private sector—share this piece. Bring it to policymakers. Start telling the truth about what’s holding America’s grid back.