a16z|Sep 30, 2026 20:46
A data center can lower your electricity bill. a16z's Alex Immerman, David George, and Sarah Wang on the myth that gets the least pushback and deserves the most:
"It may seem counterintuitive, but a data center can help lower your electricity rate. A recent US study showed that for every 10% increase in data center capacity, residential rates went down by 40 bps."
"You should think about it as a power grid is a shared fixed cost base: poles, wires, substations. A large stable customer, like a data center, can help spread those costs across more units of electricity. Simply put, more demand across a shared system is a positive."
"Investment in shared infrastructure can also improve the economics for the households and businesses connected to it."
"I don't think that point gets enough media attention. Dina Powell went on a podcast recently from Meta and talked about the Louisiana site that they did, where they worked with the community to lower electricity costs. There's real examples of that today. It's not just lip service."
@aleximm @DavidGeorge83 @sarahdingwang
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