Press Release
Santee Cooper Implements Rate Hike Amid AI Energy Demand Concerns
South Carolina, April 25 — In a unanimous vote, Santee Cooper, the state-owned power company, has announced a rate increase for high-energy users, specifically those consuming over 50 megawatts. This decision addresses the rising energy demands primarily driven by AI data centers, which could lead to an estimated 50% to 70% increase in electricity bills for residents and small businesses.
Major tech firms, including Google and Meta, are investing billions into new data centers in the region, driven by South Carolina’s advantageous location and competitive power rates. However, alongside the AI boom, electric vehicle (EV) manufacturing is also intensifying energy consumption, prompting legislators to consider capping tax breaks for these industries.
As the demand for electricity surges—projected to increase by 26% by 2028—Santee Cooper aims to ensure that these large consumers bear their share of the costs. Mike Smith, the utility’s billing director, stated, “The growth of data centers and the power they require have alarmed state officials.” State lawmakers are responding by restricting incentives and ensuring equity in energy costs among various consumers.
This proactive measure addresses both economic growth and fairness, aiming to safeguard ordinary South Carolinians from disproportionate financial burdens as the landscape of energy consumption evolves.
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