ELECTRICITY BUYERS IN CRISIS: Data Centers and Rising Power Costs

A Macro Intelligence Memo | June 2030

Energy customers had bifurcated dramatically by June 2030: data centers secured long-term power purchase agreements at premium rates but guaranteed supply, while traditional industrial customers faced power cost inflation and potential supply constraints.

Electricity prices had increased 65% from 2024-2030, driven by data center demand and constrained renewable supply. Industrial customers had responded through: - Energy efficiency investments - On-site generation (solar, backup power) - Geographic relocation to lower-cost regions - Demand reduction

Data centers had become the preferred customer for utilities (large, long-term, reliable offtakers) while traditional industrial customers faced secondary treatment.

END MEMO