Datacenter Dangers #28 – Rolling Blackouts Now Sooner

“Public utilities” were privatized under the familiar promise that “competitive market forces” would serve greater public good. That trick was accomplished by the last wave of slimy politicians around Y2K. Now the outcome is plain: highest-bidder, bulk-purchasing Datacenters will come first for energy availability and consumption, service and focus, ahead of ordinary public need.

Every statement is sourced by scientific studies, published anecdotes, harmed victims.
Learn from others’ mistakes, or suffer similarly.

It is not just that “rates go up,” but:

Privatized/deregulated systems reallocate scarce public capacity toward higher-paying or more politically powerful users, while ordinary residents absorb higher rates, worse reliability, delayed repairs, brownouts/blackouts, or public debt.

Electricity / Datacenters — 30 sourced examples

  1. PJM / datacenters / rolling-blackout avoidance — DOE allowed PJM to curtail datacenters with backup generation as a last resort before rolling blackouts. Utility Dive
    (https://www.utilitydive.com/news/pjm-doe-emergency-order-curtail-data-centers/820571/)
  2. PJM / Big Tech grid cutoffs — policymakers consider cutting datacenters off during emergencies because load is arriving faster than power plants. AP
    (https://apnews.com/article/big-tech-data-centers-electricity-energy-power-texas-pennsylvan
    ia-46b42f141d0301d4c59314cc90e3eab5
    )
  3. PJM / winter blackout risk — DOE let grid operators tap datacenter backup generators to protect households during cold snap. Bisnow
    (https://www.bisnow.com/national/news/data-center-power/us-lets-grids-tap-data-centers-for-
    power-as-winter-storm-threatens-blackouts-132959
    )
  4. PJM / reliability-cost concern — datacenter demand tied to possible forced blackouts and huge capacity costs. NRDC
    (https://www.nrdc.org/press-releases/rising-demand-data-centers-driving-reliability-cost-co
    ncerns
    )
  5. PJM / new capacity advisory — largest U.S. grid adds warning category as AI/data centers stretch supply. Bloomberg
    (https://www.bloomberg.com/news/articles/2026-06-24/us-largest-grid-updates-emergency-plan-
    as-ai-stretches-capacity
    )
  6. Virginia / demand outstrips supply — data centers projected to exceed available energy growth. Cardinal News
    (https://cardinalnews.org/2025/04/11/energy-demand-will-outstrip-supply-in-virginia-as-data
    -centers-proliferate/
    )
  7. Virginia / public subsidy concern — Dominion disclosures show ordinary customers subsidizing data center expansion. Virginia Mercury
    (https://virginiamercury.com/2024/11/26/under-pressure-from-the-scc-dominion-reveals-the-tr
    ue-cost-of-data-centers/
    )
  8. Virginia / state study — JLARC reviewed data center energy impacts and infrastructure burdens. JLARC PDF
    (https://jlarc.virginia.gov/pdfs/presentations/JLARC%20Virginia%20Data%20Center%20Study_FIN
    AL_12-09-2024.pdf
    )
  9. Ohio / AEP datacenter tariff — PUCO approved 85% minimum-demand payment to protect other ratepayers. POWER Mag
    (https://www.powermag.com/regulator-approves-aep-ohios-landmark-data-center-tariff/)
  10. Ohio / AEP rate conflict — bills rise amid fight over datacenter allocation. Columbus Dispatch
    (https://www.dispatch.com/story/business/energy-resource/2026/03/20/electric-bills-to-rise
    -as-aep-ohio-trade-org-fight-over-data-centers/89197207007/
    )
  11. Ohio / Amazon-AES grid cost concern — consumer advocate urged FERC to shield customers from Amazon-related grid costs. Utility Dive
    (https://www.utilitydive.com/news/ohio-ratepayer-occ-ferc-amazon-data-center-aes/733169/)
  12. Georgia Power / $15B expansion — infrastructure buildout largely driven by datacenters; question is who pays. AOL/AP style report
    (https://www.aol.com/news/georgia-power-wants-lower-bills-090112756.html)
  13. Georgia Power FAQ — utility publicly addresses customer concern over datacenters and bills. Georgia Power (https://www.georgiapower.com/data-centers.html)
  14. Kentucky / $3B buildout — LG&E proposes gas expansion while promising datacenters won’t burden ratepayers; advocates skeptical. LPM
    (https://www.lpm.org/news/2025-08-28/lg-e-says-3b-expansion-will-protect-kentucky-ratepaye
    rs-from-data-center-costs-others-are-doubtful
    )
  15. Michigan / 1GW single datacenter — filing warns one datacenter could exceed Grand Rapids retail demand. MPSC filing
    (https://mi-psc.my.site.com/sfc/servlet.shepherd/version/download/068cs000016eZ9ZAAU)
  16. Oregon / PGE — regulator filing says tariffs allow datacenter costs to shift onto other classes. Oregon PUC filing
    (https://edocs.puc.state.or.us/efdocs/HBC/um2377hbc343618028.pdf)
  17. Pennsylvania / consumer-protection plan — PUC advances rules to balance datacenter growth and consumer protection. PA PUC
    (https://www.puc.pa.gov/press-release/2025/puc-advances-plan-to-balance-data-center-growth
    -and-consumer-protection-11062025
    )
  18. California / large-load rulemaking — CPUC proposal would require datacenters to cover grid-upgrade costs. CPUC PDF
    (https://docs.cpuc.ca.gov/PublishedDocs/SupDoc/A2411007/8288/571368840.pdf)
  19. National / ratepayer subsidy theory — Harvard report: utility ratepayers paying for Big Tech’s power infrastructure. Harvard EELP PDF
    (https://eelp.law.harvard.edu/wp-content/uploads/2025/03/Harvard-ELI-Extracting-Profits-fr
    om-the-Public.pdf
    )
  20. National / CRS — Congress notes datacenter demand can affect rates if it changes utility costs. CRS (https://www.congress.gov/crs-product/R48646)
  21. National / Bloomberg — wholesale prices near datacenters up sharply; passed to customers. Bloomberg (https://www.bloomberg.com/graphics/2025-ai-data-centers-electricity-prices/)
  22. National / Reuters — utilities struggling with Big Tech’s massive capacity requests. Reuters
    (https://www.reuters.com/business/energy/us-utilities-grapple-with-big-techs-massive-power
    -demands-data-centers-2025-04-07
    /)
  23. NERC / large-load risk — emerging large loads create voltage/reliability risks. NERC PDF
    (https://www.nerc.com/globalassets/who-we-are/standing-committees/rstc/whitepaper-characte
    ristics-and-risks-of-emerging-large-loads.pdf
    )
  24. NERC / sudden datacenter load loss — large computational loads unexpectedly disconnecting threaten stability. Utility Dive
    (https://www.utilitydive.com/news/data-center-load-disruptions-nerc-alert-recommendations/
    818036/
    )
  25. NERC / incident review — large load loss from transmission fault shows datacenter-scale risk. NERC PDF
    (https://www.nerc.com/globalassets/our-work/reports/event-reports/incident_review_large_lo
    ad_loss.pdf
    )
  26. California deregulation crisis — rolling blackouts, market manipulation, reliability failure. CPUC report (https://docs.cpuc.ca.gov/published/Graphics/19417.PDF)
  27. California 2001 blackouts — 1.3M customers hit by rolling outages. LA Times (https://www.latimes.com/archives/la-xpm-2001-mar-20-mn-40155-story.html)
  28. Texas deregulation / blackout — isolation/deregulation contributed to disaster conditions. NYT (https://www.nytimes.com/2021/02/21/us/texas-electricity-ercot-blackouts.html)
  29. Texas blackout technical review — ERCOT forced load shedding to avoid total blackout. Baker Institute
    (https://www.bakerinstitute.org/research/what-happened-texas-understanding-february-2021-b
    lackouts
    )
  30. Electric deregulation studies — deregulated markets show higher markups/prices despite
    efficiency claims. MIT CEEPR
    (https://ceepr.mit.edu/deregulation-market-power-and-prices-evidence-from-the-electricity-
    sector/
    )

Transit / stadium infrastructure — 10 examples

  1. General stadium subsidy failure — public funding rarely pays off. Brookings
    (https://www.brookings.edu/articles/sports-jobs-taxes-are-new-stadiums-worth-the-cost/)
  2. Tax-exempt bonds subsidy — federal/local subsidy hidden in municipal bonds. Brookings PDF
    (https://www.brookings.edu/wp-content/uploads/2016/09/gayerdrukkergold_stadiumsubsidies_090
    816.pdf
    )
  3. Research roundup — stadium public financing burdens taxpayers. Journalist’s Resource
    (https://journalistsresource.org/economics/sports-stadium-public-financing/)
  4. Kansas Chiefs — projected public cost possibly $6.3B. Kansas City Star
    (https://www.kansascity.com/news/local/article314080314.html)
  5. Kansas STAR bonds — public tax revenue pledged for private stadium project. HPPR
    (https://www.hppr.org/2026-04-03/kansas-chiefs-stadium-sports-authority)
  6. Boston White Stadium — public share rose to $135M. GBH
    (https://www.wgbh.org/news/politics/2026-02-06/white-stadium-redevelopment-now-set-to-cost-
    boston-taxpayers-135-million
    )
  7. Chicago Fire stadium — “private” $750M stadium with proposed $425M TIF subsidy. Chicago
    Sun-Times
    (https://chicago.suntimes.com/city-hall/2026/06/17/mayor-brandon-johnson-425m-tif-subsidy-t
    he-78
    )
  8. NY stadium subsidies — MSG, Yankee Stadium, Citi Field, Barclays public incentives. NYC IBO
    PDF
    (https://www.ibo.nyc.gov/assets/ibo/downloads/pdf/economy-and-employment/2023/2023-march-de
    scription-of-public-subsidies-for-madison-square-garden-yankee-stadium-citi-field-and-barcl
    ays-center.pdf
    )
  9. Denver Broncos — “private financing” can still mean public resources. The Conversation
    (https://theconversation.com/broncos-say-their-new-stadium-will-be-privately-financed-but-p
    rivate-often-still-means-hundreds-of-millions-in-public-resources-270053
    )
  10. Tax Foundation — taxpayers carry stadium-subsidy burden. Tax Foundation
    (https://taxfoundation.org/blog/sports-stadium-subsidies-taxpayers/)

Rail — 10 examples

  1. UK rail privatization fares — London-Manchester single up 208%; other routes similar. BBC
    (https://www.bbc.co.uk/news/magazine-21056703)
  2. UK “costly industry” — privatized rail became financially expensive. ScienceDirect
    (https://www.sciencedirect.com/science/article/abs/pii/S1045235417300448)
  3. UK illusion of success — political/economic critique. ScienceDirect
    (https://www.sciencedirect.com/science/article/pii/S0155998214000416)
  4. Railtrack failure — infrastructure owner collapse under privatization. World Bank PDF
    (https://documents1.worldbank.org/curated/en/391631468129293630/pdf/33905a10TP120British0ra
    ilways.pdf
    )
  5. European liberalization — higher prices, staff cuts, service degradation. ETF Europe PDF
    (https://www.etf-europe.org/wp-content/uploads/2021/06/Lessons-learned-from-three-decades-o
    f-liberalisation-of-the-European-Railways-1.pdf
    )
  6. U.S. freight deregulation — GAO examined rate and service-quality problems. GAO PDF
    (https://www.gao.gov/assets/rced-99-93.pdf)
  7. U.S. rail incentives — maintenance/service problems after profit-maximizing rail model.
    ProMarket
    (https://www.promarket.org/2024/07/24/perverse-incentives-have-ruined-americas-railroads/)
  8. Argentina rail privatization — service worsened, lines closed, infrastructure deteriorated.
    Wikipedia overview (https://en.wikipedia.org/wiki/Railway_privatisation_in_Argentina)
  9. Brightline — “private” rail boosted by nearly $486M public money. WLRN
    (https://www.wlrn.org/light/wlrn-investigations/2025-11-13/brightline-public-private-fundin
    g-killer-train
    )
  10. UK subsidy/dividend critique — public subsidies paid through privatized structure. LSE PDF (https://researchonline.lse.ac.uk/id/eprint/75740/1/blogs.lse.ac.uk-Why%20the%20system%20o
    f%20rail%20privatisation%20in%20the%20UK%20has%20been%20a%20disaster.pdf
    )

Shipping / Ports — 10 examples

  1. Australia container ports — privatization increased rents/costs passed down supply chain.
    UNSW
    (https://businessthink.unsw.edu.au/articles/australia-container-ports-privatisation-product
    ivity
    )
  2. Auckland port warning — privatization expected to raise business costs. NZ Herald
    (https://www.nzherald.co.nz/business/port-privatisation-would-mean-higher-costs-for-aucklan
    d-businesses-shane-te-pou/NCG4U4RZDNHPPJYJ5RNQRES6KE/
    )
  3. PNG port charges — international terminal monopoly/excessive charges. Devpolicy
    (https://devpolicy.org/aiffp-oblivious-to-excessive-png-port-charges-20240408/?output=pdf)
  4. St. Lucia port concession — long lease criticized as public-value transfer. Voice St. Lucia (https://thevoiceslu.com/2025/08/sold-out-for-a-dollar-the-real-price-of-the-gph-port-agree
    ment/
    )
  5. Chattogram port — 41% service-charge increase amid foreign-operator debate. Prothom Alo
    (https://en.prothomalo.com/bangladesh/ug35s2kqs8)
  6. Chattogram tariff hike — business leaders fear higher trade costs. Business Standard
    (https://www.tbsnews.net/bangladesh/ctg-port-makes-hefty-profits-yet-why-its-tariff-was-hik
    ed-1256261
    )
  7. World Bank port toolkit — private port monopolies can result from reform. PPIAF
    (https://www.ppiaf.org/sites/ppiaf.org/files/documents/toolkits/Portoolkit/Toolkit/module6/
    regulatory.html
    )
  8. Ocean shipping deregulation — confidential contracts changed pricing transparency. GovInfo
    Senate report (https://www.govinfo.gov/content/pkg/CRPT-105srpt61/html/CRPT-105srpt61.htm)
  9. Shipping consolidation — deregulation/privatization followed by consolidation and market
    power. UNCTAD PDF (https://unctad.org/system/files/official-document/rmt2022ch6_en.pdf)
  10. Market power at sea — freight markups increased after demand shock. CESifo
    (https://ideas.repec.org/p/ces/ceswps/_12293.html)

Water / hydro — 10 examples

  1. Private water systems cost more — annual bills: private $501 vs public $315. Water Policy
    (https://iwaponline.com/wp/article/24/3/500/87702/Water-pricing-and-affordability-in-the-US
    -public
    )
  2. Water privatization rate hikes — rates rise about 18% every other year after privatization.
    Food & Water Watch
    (https://www.foodandwaterwatch.org/2015/08/02/water-privatization-facts-and-figures/)
  3. Large municipal sales — bills nearly tripled after average 11 years private control.
    Selling Out Consumers PDF
    (https://inthepublicinterest.org/wp-content/uploads/Selling-out-Consumers.pdf)
  4. Atlanta privatization failure — staffing cuts, backlog, maintenance failures. Public
    Citizen PDF (https://www.citizen.org/wp-content/uploads/atlantafiasco.pdf)
  5. Connecticut Aquarion — 42% proposed rate hike after blocked quasi-public sale. AP
    (https://apnews.com/article/industry-regulation-connecticut-utilities-general-news-9ba974a8
    4129a5910558e3bb759dc8f3
    )
  6. Arizona private-equity water — residents fight hikes after takeover. AZ Central
    (http://www.azcentral.com/story/news/politics/arizona/2026/03/03/arizonans-fight-rate-hike-
    after-private-equity-takeover/88867779007/
    )
  7. Arizona sewer hike — 154% sewer hike after private equity acquisition. AZ Law Now
    (https://azlawnow.com/investigations/picacho-eloy-154-percent-pe-rate-hike/)
  8. Illinois American Water — watchdog alleges $50M overcharge in proposed hike. WCBU
    (https://www.wcbu.org/local-news/2026-06-09/watchdog-uncovers-50-million-in-overcharges-in-
    illinois-american-waters-proposed-rate-hike
    )
  9. Michigan hydro dams — Consumers sale plan would create $270M profit and ratepayer burden.
    Bridge Michigan
    (https://bridgemi.com/michigan-environment-watch/consumers-energys-sale-plan-would-turn-unp
    rofitable-dams-into-270m-payday/
    )
  10. Michigan hydropower buyback — utility would sell dams for $1 each then buy power at
    roughly double market. AP
    (https://apnews.com/article/brian-wheeler-michigan-taxes-renewable-energy-general-news-d27
    495c7d59a99d92b91baba044a80de
    )

Core pattern Across sectors, the repeated mechanism is:

  1. public asset/service is reframed as inefficient;
  2. politicians promise competition, efficiency, lower prices;
  3. ownership/control/revenue rights shift private;
  4. private party prioritizes large guaranteed buyers or monopoly rents;
  5. residents absorb the externalities: higher rates, degraded service, tax subsidies, debt, brownouts, blackouts, delayed maintenance, or loss of public control.

For electricity specifically, Datacenters intensify the imbalance because they are not just “new customers” — they are grid-shaping loads large enough to alter generation planning, transmission spending, emergency curtailment rules, and who pays for reliability.

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