Good morning. Is the AI economy at risk of collapsing under its own weight?
Arizona Public Service, the state’s largest utility company, has proposed a 45% electricity rate increase for “extra large energy users”—cough data centers cough—to ensure “that they are paying their fair share,” its CEO says. The utility also proposed to hike residential rates 14.5%.
The news comes as U.S. energy prices are rising faster than inflation (which at 3.8% is no slouch), consumer backlash to data center buildout is building, and corporations are starting to shun the practice of tokenmaxxing in favor of capping runaway AI spend.
The only place where AI friction seems minimal? Oddly, the markets. Staggering capex budgets haven’t stressed investors to the point where AI anxieties consistently outweigh ambitions—even if the jitters can’t be ignored.
Optimism, you say? In this economy?
