Show Notes
You don’t have to look far to see the vitriol and backlash ignited by the rapid expansion of hyperscaler data centers. While critics and activists tend to focus their ire on resource consumption and residents’ electricity bills, the reality of data center economics is far more complex.
In this episode of Catalyst, host Shayle Kann sits down with Andy Lubershane, head of research at Energy Impact Partners, to unpack the nuances. They crunch the numbers behind utility rate structures, consider the "denominator effect" that can lower customers’ rates, and dig into the supply chain crunches pushing global power system costs higher.
Shayle and Andy discuss:
- Why a new data center can reduce utility rates for locals while contributing to rising costs elsewhere
- How data centers impact utility tariff rates
- Separating public perception of data centers from the reality of the grid
- How soaring demand for transformers, switchgear, conductors, gas turbines, and labor is driving systemic cost increases across the power sector
- Strategies to mitigate rising global grid costs, from load flexibility and distributed energy resources (DERs) to energy efficiency hardware
- Catalyst: What comes after the data center backlash?
- Catalyst: Enter the electric supercycle
- Catalyst: Can AI revolutionize grid operations?
- Catalyst: Inside the AI power wars
- Open Circuit: As midterms approach, electricity bills are on the ballot
- Open Circuit: Data centers have a Texas-sized energy problem
- Latitude Media: The great home battery financing experiment
Credits: Hosted by Shayle Kann. Produced and edited by Max Savage Levenson. Original music and engineering by Sean Marquand. Stephen Lacey is our executive editor.
Catalyst is brought to you by EnergyHub. Peak season puts every grid to the test — and the utilities that pass are the ones that built flexible capacity before they needed it. EnergyHub works with more than 170 utilities to coordinate 2.5 million devices and 3.4 gigawatts of dispatchable flexibility through a single platform designed to perform when it counts most. See what that looks like at https://www.energyhub.com/
Catalyst is brought to you by Bloom Energy. Bloom Energy fuel cells deliver affordable, ultra-reliable onsite power for hospitals, utilities, and data centers – at speed and at scale. Learn more by visiting https://www.bloomenergy.com
This episode of Catalyst is brought to you by ENGIE, the smarter energy supplier. ENGIE doesn't just provide the power to run your business — they supply the energy to move it forward, with reliable, flexible solutions built for what's next. Learn more at https://www.engieresources.com
More from Catalyst with Shayle Kann
As data center-driven load growth continues to rise, hyperscalers are turning to natural gas – both in front of and behind the meter — to secure power. But whether the natural gas pipeline system has the bandwidth to support this surging demand remains far from certain.
Of all the concerns surrounding the AI boom, data center water usage tops the list. Opponents claim that massive hyperscaler facilities threaten local drinking supplies and drain aquifers. Proponents say data centers use a negligible amount of water, at least compared to agriculture or conventional power generation sources.
It’s been a wild few years for grid-scale batteries in Texas. At the start of the decade, the Lone Star State was home to roughly 200 megawatts of battery capacity. Today, that number has skyrocketed to seventeen gigawatts…with at least five more gigawatts expected to come online by the end of 2026.
This is a partner episode, brought to you by Bloom Energy.
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