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‘Phantom’ Data Centers Skew US Power Forecasts

Phantom data centers skew power forecasts

Catenaa, Monday, December 15, 2025-US power providers are reporting distorted electricity demand forecasts due to data center projects that may never materialize.

Builders, including major tech firms such as Meta Platforms, have submitted numerous applications to secure electricity for planned data centers.

 Many of these facilities remain speculative, leading to inflated projections of future power needs and complicating long-term planning for utilities.

In Ohio, culling opportunistic electricity applications resulted in a 60% reduction in projected demand, highlighting the scale of the discrepancy.

The trend has raised concerns about overbuilding, misallocation of resources, and inaccurate pricing of electricity capacity.

Industry analysts note that the AI-driven expansion in data center construction is contributing to the surge, as companies anticipate future computational demand.

Utilities must now differentiate between genuine projects and speculative applications to ensure reliable supply and avoid financial inefficiencies.