The artificial intelligence boom is reshaping California’s energy landscape, and Pacific Gas & Electric (PG&E) is riding the wave, but potentially at the expense of everyday ratepayers.

As data centers proliferate across the Bay Area, PG&E has reported a massive surge in energy demand, with its data center pipeline nearly doubling from 5.5 to 10 gigawatts since February. The utility plans to open 18 new data centers by 2030, positioning itself at the forefront of the AI infrastructure revolution.

However, the utility’s promises of potential rate reductions ring hollow for many consumers. PG&E’s rates have skyrocketed 41% in just three years and 70% since 2020, even as the company posts record profits. Despite spokesperson Paul Doherty’s claims that data center growth could help reduce rates, consumer advocates remain skeptical.

Jamie Court from Consumer Watchdog warns that the data center “gold rush” might come at ratepayers’ expense, highlighting significant uncertainties about infrastructure costs and fair distribution of financial burdens. A pending bill awaiting Governor Newsom’s signature seeks to protect consumers by establishing special tariffs for large electricity users.

Severin Borenstein from UC Berkeley’s Energy Institute suggests that managing this energy transformation will be critical. While the AI-driven energy expansion could potentially benefit ratepayers if handled correctly, it also presents substantial risks to California’s electrical grid. Regulators may need to implement strict power consumption guidelines for tech companies during peak hours.

As Silicon Valley continues its relentless technological expansion, the true cost of AI’s energy hunger remains uncertain. Ratepayers are left wondering whether they’ll be passive participants or unwitting financiers of this digital gold rush.