Your Money Minute (CNBC)

Episode: "Data Centers May Push Up Power Prices"

Date: December 17, 2025
Host: Peter Schachnow
Guest Expert: Stephen Bird (Global Head of Thematic and Sustainable Research, Morgan Stanley)

Main Theme & Purpose

This episode explores how the rapid expansion of AI-driven data centers is increasing power demand in the U.S., with a focus on how this trend could affect electricity prices for consumers. The discussion centers on differences across states and the potential impact on utility bills, with insight from industry expert Stephen Bird.

Key Discussion Points & Insights

The "Power Struggle": What’s Happening?

• AI Data Centers’ Soaring Demand
  • New artificial intelligence applications require significant computing power.
  • As a result, data centers are consuming increasing amounts of electricity.
  • Peter Schachnow frames this as a literal "power struggle" for national energy resources.
    Quote:

    "We're talking about a literal power struggle, the effort to provide enough power for the country, while artificial intelligence driven data centers are needing an increasing amount of power to do their computing tasks."
    — Peter Schachnow, [00:08]

Impact on Electricity Consumers

• Regional Differences in Pricing

  • Stephen Bird explains that some states are changing their approach to utility rates.
    • Some have created special, higher rates specifically for large tech "hyperscalers" (big companies running massive data centers).
    • In these places, residential rates might actually go down or at least not increase.
    • Key Insight: Rate impact is highly dependent on regional policies. Quote:

    "Some states are setting up very separate utility rates for the hyperscalers that are significantly higher than for everybody else. And then you can show clearly that in fact there's not going to be a negative impact, that rates could actually go down for other customers."
    — Stephen Bird, [00:33]

• Competitive Power Markets: Uncertain Outcomes

  • In other regions, especially those with competitive (rather than regulated) energy markets, such as the Mid Atlantic and Texas, the costs may be spread out differently.
  • It becomes difficult to insulate regular customers from the cost burden.
    • As a result, higher electricity bills for everyone in these areas are possible. Quote:

    "Now in some competitive power markets like the Mid Atlantic and Texas, it's not quite so straightforward to isolate the cost structure. So in those areas, it's very possible you could see higher bills for everybody."
    — Stephen Bird, [00:49]

The Scale of the Issue

• Morgan Stanley’s Projection
  • Bird’s research group projects a substantial shortfall in power capacity.
  • Estimate: An overall electricity shortfall of 47 GWh compared to anticipated data center needs "over the next few years." Quote:

    "Byrd's team at Morgan Stanley is projecting an overall power shortfall of 47 GWh compared to what data centers might need over the next few years."
    — Peter Schachnow, [00:56]

Notable Quotes & Memorable Moments

• Peter Schachnow ([00:08]):

  "We're talking about a literal power struggle, the effort to provide enough power for the country, while artificial intelligence driven data centers are needing an increasing amount of power..."

• Stephen Bird ([00:33]):

  "Some states are setting up very separate utility rates for the hyperscalers that are significantly higher than for everybody else. And then you can show clearly that in fact there's not going to be a negative impact, that rates could actually go down for other customers."

• Stephen Bird ([00:49]):

  "Now in some competitive power markets like the Mid Atlantic and Texas, it's not quite so straightforward to isolate the cost structure. So in those areas, it's very possible you could see higher bills for everybody."

Timestamps for Key Segments

• 00:00–00:18 — Power struggle explained; connection to AI and data center energy use
• 00:18–00:32 — Stephen Bird sets the stage: variation in state policy
• 00:33–00:49 — Details on state approaches to hyperscalers and rate impacts
• 00:49–00:56 — The complexity in competitive power markets (Mid Atlantic and Texas)
• 00:56–01:10 — Morgan Stanley’s 47 GWh shortfall projection

Takeaway for Listeners

• The surge in power demand from AI data centers is reshaping energy markets in the U.S.
• The potential consumer impact depends heavily on where you live and how your state regulates power rates.
• In regulated states with special rates for big tech customers, most individuals may not see rising bills—and could even see lower rates.
• In competitive markets, the risk of widespread bill increases is higher.
• Capacity shortfalls are looming, which could intensify pressures on all fronts.

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