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38 SMT007 MAGAZINE I APRIL 2026 cycles, improves field reliability, accelerates quali- fication, and lowers lifecycle costs, all transforming heat management from a defensive measure into a strategic advantage. The Future Belongs to the Cool As electronics continue to evolve—more compact, powerful, and integrated—the frontier is no longer defined by what we can make electrons do, but by how efficiently we can move heat away from them. Thermal management is the invisible enabler of every modern innovation. The companies and engineers who treat it not as an afterthought, but P OW E R I N G T H E F U T U R E AI Data Center Boom Comes With Electricity Cost Concerns The rapid expansion of artificial intelli- gence has fueled a boom in data center construc- tion, but it has also triggered growing backlash over rising electricity costs. Communities and policymakers increasingly worry that energy-hungry facilities built by major technology companies—often called AI hyperscalers—are straining power grids and driving up household electricity bills. Since 2020, U.S. residential electricity prices have increased by more than 36%, rising from 12.76 cents per kilowatt-hour to 17.44 cents in early 2026, with projections reaching about 19 cents by 2027. While many critics attribute these increases to the surge in AI infrastructure, a report by semiconductor research firm SemiAnalysis argues that the causes are more complex. According to the report, market design and policy decisions play a larger role in rising electricity prices than data center growth alone. In particular, the study highlights the Base Residual Auction, a pricing mechanism used by PJM Interconnec- tion, the regional grid operator serving 13 eastern U.S. states. This system requires consumers to pay for projected electricity demand two years in advance to ensure sufficient supply during peak BY I-CONNECT007 STAFF periods. SemiAnalysis contends that PJM's demand forecasts have frequently overestimated future needs— especially because some planned data centers have faced construction delays due to hardware short- ages—leading to inflated prices. The report contrasts PJM with Texas's electricity market, managed by the Electric Reliability Council of Texas (ERCOT), where prices have remained relatively stable despite significant data center development. Analysts say the decentralized nature of U.S. energy regulation means local market rules strongly influence how infrastructure costs are passed on to consumers. In response to criticism, technology companies such as Microsoft and Anthropic have pledged to cover addi- tional electricity costs generated by their data centers and to invest in renewable energy sources. The U.S. government has also pushed companies to ensure that these costs are not shifted to consumers. However, some analysts question whether these commitments are sustainable because many AI companies are still struggling to turn profits. As demand for computing power grows, energy supply constraints and long wait times for grid connec- tions may continue to intensify debates over the role of AI infrastructure in rising electricity costs. as a design foundation, will define the next era of electronics. Performance, reliability, and sustain- ability all depend on mastering the most funda- mental element: temperature. You can't push performance if you can't control the heat. SMT007 Brian Buyea is president of Remtec Inc. To read past columns, click here.