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.

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.

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]

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?”

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

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.

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.