# Do data centers actually increase electricity prices? No...and yes

- Show: [Catalyst](https://hardwarepodcasts.com/podcast/catalyst)
- Published: 2026-09-10
- Length: 42m
- Page: https://hardwarepodcasts.com/podcast/catalyst/2026-09-10-do-data-centers-actually-increase-electricity-prices-no-and-yes

## Summary

Andy Lubershane, head of research at Energy Impact Partners, joins host Shayle Kann to explain the dual impact of data centers on electricity prices: they often lower local utility rates through the 'denominator effect' while driving up global grid costs via supply chain bottlenecks. They discuss how soaring demand for transformers, switchgear, and labor is inflating the cost of new generation and transmission, creating a macroeconomic pressure that offsets local benefits. The conversation also explores strategies to mitigate these costs, including load flexibility, distributed energy resources, and energy efficiency, as well as the political and public perception challenges surrounding data center expansion.

## Chapters

- [0:07](https://hardwarepodcasts.com/podcast/catalyst/2026-09-10-do-data-centers-actually-increase-electricity-prices-no-and-yes#t=7) Introduction: Local vs. Global Price Impacts
- [3:44](https://hardwarepodcasts.com/podcast/catalyst/2026-09-10-do-data-centers-actually-increase-electricity-prices-no-and-yes#t=224) The Denominator Effect: Why Data Centers Lower Local Rates
- [12:22](https://hardwarepodcasts.com/podcast/catalyst/2026-09-10-do-data-centers-actually-increase-electricity-prices-no-and-yes#t=742) Utility Tariffs and the Phase Shift in Negotiations
- [16:52](https://hardwarepodcasts.com/podcast/catalyst/2026-09-10-do-data-centers-actually-increase-electricity-prices-no-and-yes#t=1012) Public Perception, Trust, and the Gallup Poll
- [21:52](https://hardwarepodcasts.com/podcast/catalyst/2026-09-10-do-data-centers-actually-increase-electricity-prices-no-and-yes#t=1312) Global Supply Chain Crunch: Transformers, Switchgear, and Labor
- [34:45](https://hardwarepodcasts.com/podcast/catalyst/2026-09-10-do-data-centers-actually-increase-electricity-prices-no-and-yes#t=2085) Mitigation Strategies: Efficiency, Load Flexibility, and Distributed Resources

## Topics

- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)
- [Connected products & IoT](https://hardwarepodcasts.com/topic/connected-products-and-iot)
- [Marketing & brand](https://hardwarepodcasts.com/topic/marketing-and-brand)

## Most relevant to

large enterprises

## Mentioned

- Energy Impact Partners (company)
- EnergyHub (company)
- EPRI (company)
- Edison Electric Institute (company)
- SparkFun (company)
- Air Energy (company)
- Harris Power (company)
- Latitude Media (company)

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- [Renewable Energy Policy with Ari Gerstman](https://hardwarepodcasts.com/podcast/the-amp-hour/2023-05-02-renewable-energy-policy-with-ari-gerstman) (The Amp Hour)
- [EMS & The Economist: How AI Data Centers Are Reshaping Memory Prices And Supply with Shawn DuBravac](https://hardwarepodcasts.com/podcast/ems-c-level/2026-04-27-ems-the-economist-how-ai-data-centers-are-reshaping-memory-prices-and-supply-wit) (EMS@C-LEVEL)
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## Citing this page

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