Data Centres and Schools Compete for Electricity, Students Left Sweltering

Amid a scorching heatwave hitting the East Coast of the United States, the Henrico district in Virginia has issued an instruction that raises serious questions. While 37 data centres operate non-stop consuming vast amounts of electricity, public schools have been asked to switch off lights and conserve power to prevent bills from ballooning. This case, reported by Futurism and 404 Media in early July 2026, serves as a stark example of the increasingly sharp competition for energy between the digital industry and the public interest, an issue that is also beginning to surface in Indonesia alongside the rapid construction of data centres in the country. Henrico district manager John Vithoulkas sent a circular stating that electricity tariffs for all government facilities and schools would rise by 25 per cent starting 1 July 2026. The increase is expected to add a cost burden of US$5 million in one fiscal year, with the potential for further rises in the future. To cut costs, he asked staff and teachers to switch off lights when rooms are empty, shut down computers at the end of the working day, adjust window blinds to block the sun’s heat, and avoid using space heaters. This instruction came as temperatures soared across the United States. In the US, electricity tariffs during certain periods are set based on demand and supply. When electricity demand surges and supply remains unchanged, transmission companies set a higher per-kWh tariff. However, tariffs can also fall when supply far exceeds demand. Ironically, the approximately 37 power-hungry data centres now operating in Henrico district were not urged to reduce their electricity consumption. Data centres are facilities that require a large and stable power supply 24 hours a day, 365 days a year. A single large facility can absorb power equivalent to hundreds of thousands of households, or even more, especially those supporting artificial intelligence (AI) and cloud computing services. In Henrico, this additional load is pushing the electricity grid system to operate near its capacity limits, particularly during summer when demand for air conditioning surges. Consequently, the investment costs for new grid infrastructure and increased generation capacity are often passed on to all customers, including schools and ordinary residents. ‘Many residents report that their home electricity bills have doubled even though they have not changed their power usage habits. Even those who have installed solar panels and heat pumps are still feeling the impact,’ the Futurism report stated. In Indonesia, data centre construction is accelerating rapidly. Areas around Jakarta, Batam, and Central Java are favoured locations due to their proximity to user centres and fibre-optic cable routes. This means Indonesia is set to face similar challenges. Power demand will surge quickly. A single data centre cluster can absorb hundreds of megawatts, outpacing the expansion speed of local power plants. Beyond electricity, data centres also require vast amounts of water for cooling systems, projected to reach 86.5 billion litres per year by 2030, competing with the clean water needs of residents. If not properly regulated, the cost of upgrading electricity infrastructure could be passed on to general customers, including schools, hospitals, and lower-to-middle-income citizens.