IDEAS home Printed from https://ideas.repec.org/p/eca/wpaper/2013-404324.html

On the predictability of the effects of data centers electricity demand shocks

Author

Listed:
  • Claude Crampes
  • Antonio Estache

Abstract

The paper shows that the entry of data centers in the electricity market leads to priceand consumption effects observed in the real world that were quite predictable froma simple conceptual modelling exercise. The size of the associated welfare losses issensitive to specific electricity market characteristics, explaining why they are oftennot comparable across regions or countries. In general, the historical users are likelyto be worse off in the short run. They will recover their losses in the longer run, butonly if the entrant finances its own capacity needs and if the data centers do not haveexcessive bargaining power. The differences in possible outcomes according to contextsuggests that one-size-fits-all policies to manage the shock across countries or regionswill fail to mitigate undesirable effects in some contexts.

Suggested Citation

  • Claude Crampes & Antonio Estache, 2026. "On the predictability of the effects of data centers electricity demand shocks," Working Papers ECARES 2026-08, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:eca:wpaper:2013/404324
    as

    Download full text from publisher

    File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/404324/3/WP_ECARES_2026_08_Onthepredictability.pdf
    File Function: Œuvre complète ou partie de l'œuvre
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eca:wpaper:2013/404324. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Benoit Pauwels (email available below). General contact details of provider: https://edirc.repec.org/data/arulbbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.