Data centers and your electric bill

Summary

Marketplace Morning Report — “Data centers and your electric bill”

Date: December 19, 2025
Host: David Brancaccio
Key Reporters: Amy Scott, Kimberly Adams, Lily Jamali
Episode Focus:
A concise exploration of how the rapid growth of data centers — driven by AI, crypto, and cloud services — is contributing to rising electricity prices in the U.S. The episode also touches on the recent TikTok ownership change, shifting housing market dynamics across the country, and new Senate scrutiny of tech firms’ influence on electric bills.

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Episode Overview

Marketplace Morning Report surveys top business headlines, then zeroes in on the impact of data centers on consumer electric bills. The show investigates what’s behind surging electricity costs and how infrastructure demands from Big Tech are shared with everyday customers, with insight from analysts, advocates, and industry consultants.

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Key Segments & Highlights

1. TikTok U.S. Ownership Changes — [00:46-01:41]

• Background:
  Lily Jamali (BBC) details the agreement for TikTok to separate its U.S. operations from Chinese parent ByteDance, in compliance with U.S. law.
  • Oracle, Silver Lake, and Abu Dhabi’s MGX will hold 80.1%; ByteDance retains 19.9%.
  • Quote [01:15]:
    “Part by the White House, is meant to put TikTok in compliance with a US law passed last year that required its American arm to be banned if it wasn’t sold.” — Lily Jamali

2. U.S. Housing Market Patchwork — [02:16-03:55]

• Austin, TX: Market has cooled; becomes buyer’s market. Sellers offering concessions.
  • Quote [02:34]:
    “Ultimately, for affordability in Austin, it is a good thing that prices have readjusted.” — Marima Reis
• Cleveland, OH: Still a seller’s market; high demand for well-priced homes.
  • Quote [02:49]
    “If it's priced right, looks good, it goes fast with multiple offers.” — Doxy Jelks
• Jacksonville, FL: Balanced market where neither side dominates.
  • Amy Scott: “A more balanced market could be coming to a neighborhood near you. Nationally, realtor.com is predicting next year will see the most balanced market in about a decade.” [03:15]

3. Data Centers, Tech Firms, and Surging Electric Bills — [04:27-07:23]

The Problem

• Electricity prices increased 6.9% in a year, more than general inflation.
• new data centers (for AI, crypto, cloud storage) are energy-intensive — “gorging” on power.

Government Scrutiny

• Three Senate Democrats launch investigation into tech firms’ energy use and utility pricing.

Expert Voices & Analysis

• Ari Pesko (Harvard Electricity Law Initiative):
  • Utilities spend billions on infrastructure upgrades to accommodate data centers, then distribute those costs to all consumers.
  • Quote [05:14]:
    “Utilities are building billions of dollars of infrastructure and then spreading those costs to everyone.”
  • Quote [05:18]:
    “Electricity prices are now a national issue... data centers are certainly one reason. I think they're a nice political target.”
• Jeff Hebertson (Rystad Energy):
  • It’s difficult to quantify the share of price increases caused by data centers vs. other needs.
  • Quote [05:46]:
    “We know that infrastructure is placing upward pressure on power pricing, but it's really hard to say exactly how much that's weighted towards that.”
  • Quote [06:09]:
    “Transmission upgrade due to wildfire risk that we're seeing in California, or is the transmission price increase related to a data center that's being installed in Virginia or Texas? That is very unclear right now.”
  • Data centers are “very likely to contribute to higher prices in the future, like by 2030.”
• Kush Patel (E3, study for Amazon):
  • Sometimes, new data center infrastructure can even lower local consumer prices, but effects are nuanced.
  • Quote [06:42]:
    “Those impacts are real, but how it actually impacts individual customers is quite varied and nuanced, and it's not really a clean story.”
  • Effects depend on deals between data center operators and utilities — and these contracts are usually confidential.

Open Questions

• What upgrades are needed? Who pays? Are firms getting subsidized power?
• Quote [06:51]:
  “What kind of upgrades are necessary? Who's paying for them? Is the facility getting subsidized power or not?” — Kimberly Adams

The Investigative Push

• Senators demand transparency on contracts between local utilities and major tech firms — seeking responses by January 12.

4. Marketplace Quiz and Closing Notes — [07:23-08:06]

• A lighthearted plug to test listeners’ business knowledge.
• “Feel the satisfaction of confirming your superior knowledge by taking our weekly Marketplace news quiz.” — David Brancaccio [07:23]

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Notable Quotes

• Lily Jamali (BBC), on TikTok deal [01:15]:
  “...is meant to put TikTok in compliance with a US law passed last year that required its American arm to be banned if it wasn’t sold.”
• Amy Scott, on market balance [03:15]:
  “A more balanced market could be coming to a neighborhood near you. Nationally, realtor.com is predicting next year we'll see the most balanced market in about a decade.”
• Ari Pesko (Harvard), on costs [05:14]:
  “Utilities are building billions of dollars of infrastructure and then spreading those costs to everyone.”
• Jeff Hebertson (Rystad), on price pressure [05:46]:
  “We know that infrastructure is placing upward pressure on power pricing, but it's really hard to say exactly how much that's weighted towards that.”
• Kush Patel (E3 for Amazon), on complexity [06:42]:
  “Our perspective is that those impacts are real, but how it actually impacts individual customers is quite varied and nuanced, and it's not really a clean story.”
• Kimberly Adams, on transparency [06:51]:
  “What kind of upgrades are necessary? Who's paying for them? Is the facility getting subsidized power or not?”

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Timestamps for Key Segments

• TikTok Ownership Change: 00:46–01:41
• Housing Market Rundown by Region: 02:16–03:55
• Data Centers & Your Electric Bill (Main Focus): 04:27–07:23

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Tone & Style

Marketplace continues its clear, concise, pragmatic analysis of economic news, blending data, expert commentary, and accessible reporting. The tone is matter-of-fact, with a dash of curiosity and a focus on unpacking complex drivers behind everyday phenomena like utility bills.

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Summary Takeaway

Data centers, vital to the digital economy, are putting new strains on the nation’s power infrastructure. While tech firms sometimes help upgrade local grids, the cost burden often disperses to all consumers, fueling bill increases — but the full scope and fairness of this cost-sharing remain shrouded in confidential deals. As scrutiny mounts, U.S. senators are seeking answers on behalf of consumers, while experts warn of even higher costs as AI and cloud demand continue to expand.

Transcript

[Marketplace Host]

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[David Brancaccio]

American and Middle Eastern New ownership is on the way for TikTok USA, I'm David Brancaccio in Los Angeles. TikTok's long awaited split from its China based owner is now in motion after its parent company By Dance signed a binding agreement to hand over control of the US Operations of the popular social media platform to a group led by the database firm Oracle. Lily Jamali is tech correspondent for our partners, the BBC the deal, brokered in.

[Lily Jamali]

Part by the White House, is meant to put TikTok in compliance with a US law passed last year that required its American arm to be banned if it wasn't sold. U.S. lawmakers expressed concerns that ByteDance's ties to Beijing meant it could potentially control the content fed to American users by TikTok's algorithm. TikTok has denied those allegations. The deal is expected to close on 22 January.

[David Brancaccio]

Under the agreement, Oracle, the private equity group Silver Lake and Abu Dhabi based MGX will hold an 80.1% stake in the new TikTok USDS, while ByteDance of China will hold on to 19.9%. China's antitrust regulators still will have a say in this. We'll learn how many used homes and apartments were sold in November later this morning. People with older, lower mortgages aren't selling much and low inventory and medium high mortgage rates are keeping buyers locked out. Now that's the national picture. Marketplace's Amy Scott now looks at variations by region.

[Amy Scott]

Austin, Texas was the poster child of the pandemic era housing boom, but Crystal Shaw with Roots Residential Group says today it's a buyer's market. Sales have slowed, prices have fallen and sellers are making concessions like doing repairs or buying down interest rates.

[Marima Reis]

Ultimately, for affordability. In Austin, it is a good thing that prices have readjusted.

[Amy Scott]

In Cleveland, Ohio, it's a different story. Longtime agent Doxy Jelks says the traditionally more affordable market continues to attract plenty of demand.

[Real Estate Expert / Analyst]

It's still a seller's market here in Cleveland. If it's priced right, looks good, it goes fast with multiple offers, though she.

[Amy Scott]

Does see some houses staying on the market longer. For a more balanced market, look to Jacksonville, Florida, where Watson Realty president Bill Watson says demand and supply are pretty well matched.

[David Brancaccio]

It means the sellers are not getting everything they demand. The buyers may not get everything they.

[Amy Scott]

Want either, which he says is ultimately healthier than one side having all the power. A more balanced market could be coming to a neighborhood near you. Nationally, realtor.com is predicting predicting next year we'll see the most balanced market in about a decade. I'm Amy Scott for Marketplace.

[Marketplace Host]

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[David Brancaccio]

Among the many rising prices pressuring consumers electricity prices up 6.9% year over year, much higher than overall inflation. And costs will rise more with increased demand from AI crypto and so many other flavors of data centers which gorge on electricity. This week, three Democrats in the Senate said they're opening an investigation into tech firms and how their power demands are are hitting our electric bills. Marketplace's senior Washington correspondent Kimberly Adams reports.

[Kimberly Adams]

What we do know is that all the new data centers coming online use a lot of electricity. We also know that local utilities are building or upgrading their infrastructure, which is expensive.

[Chase Bank Advertiser]

Utilities are building billions of dollars of infrastructure and then spreading those costs to everyone.

[Kimberly Adams]

Ari Pesko is the director of the Electricity Law Initiative at Harvard.

[Chase Bank Advertiser]

Electricity prices are now a national issue. There are several reasons why prices are going up across the country, and I think data centers are certainly one reason. I think they're a nice political target.

[Kimberly Adams]

Pesko and others have done research arguing big tech firms aren't paying their fair share of the costs of upgrading the electric grid driving up the bills for everyone else. But when it comes to the direct impact of data centers, says Jeff Hebertson, lead renewables analyst at Rystad Energy, we.

[Real Estate Expert / Analyst]

Know that infrastructure is placing upward pressure on power pricing, but it's really hard to say exactly how much that's weighted towards that.

[Kimberly Adams]

Rystad predicts data centers are very likely to contribute to higher prices in the Future, like by 2030. But right now, when it comes to the costs of utility upgrades, is the.

[Real Estate Expert / Analyst]

Transmission upgrade due to wildfire risk that we're seeing in California, or is the transmission price increase related to a data center that's being installed in Virginia or Texas? That is very unclear right now.

[Kimberly Adams]

According to some of the tech firms, the infrastructure that comes along with a data center can sometimes even lower customer prices. Kush Patel is a senior partner at Energy Environmental Economics, which recently did a study for Amazon on how some of its data centers were affecting residential prices.

[Real Estate Expert / Analyst]

Our perspective is that those impacts are real, but how it actually impacts individual customers is quite varied and nuanced, and it's not really a clean story.

[Kimberly Adams]

What kind of upgrades are necessary? Who's paying for them? Is the facility getting subsidized power or not?

[Real Estate Expert / Analyst]

How it impacts a customer in Virginia is going to be a lot different than in Jersey or California.

[Kimberly Adams]

How much a data center coming to your town will affect your electricity bill often depends on whatever deal the tech firm struck with the local utility. Those contracts tend to be confidential, but the senators want to know what's in them, and they're calling for a response from tech firms by January 12th. In Washington, I'm Kimberly Adams for Marketplace.

[David Brancaccio]

Your Marketplace Listening this week has turned you into the go to person in the room on matters economic. Feel the satisfaction of confirming your superior knowledge by taking our weekly Marketplace news quiz. There's a new way to do that this week. Marketplace.org reveals all now. Ahead of that, let's try one here. What does a fusion power company have to do with President Trump's social media company? One of the biggest business stories of the week, TAE Technologies. Ring any bells? Sally in Bangor, you did it. Nicely done. In Los Angeles, I'm David Brancaccio. Marketplace Morning reports from APM American Public Media.

[Marima Reis]

Hey everyone. You already listened to Marketplace podcasts, so you know that it's important to understand how economic forces shape our lives. And that feels especially important now as we're all trying to make sense of the latest headlines. I'm Marima Reis, host of Marketplaces. This is uncomfortable. A show that explores how money bumps up against our relationships, our choices, and the parts of life we don't always say aloud. And starting January 15th, we are back every single week. New stories, new questions, and the kind of conversations that make you feel less alone in this quickly changing economy. We're tackling questions like should I turn my hobby into a money making side hustle? How do I deal with layoff anxiety? Or what do we owe our parents financially? Don't miss an episode. Subscribe to this is Uncomfortable from Marketplace. Wherever you get your podcasts.