AI Data Centers Drive 174% Electricity Cost Rise Across 13 US States

Recent research indicates that regular energy consumers, rather than corporations, are shouldering most of the increased electricity costs driven by the rapid expansion of data centers fueled by artificial intelligence demand. Data centers, operated by major AI companies like Amazon, Meta, and Microsoft, consume significantly more power than traditional computing, with training a single AI chatbot using as much energy as 100 homes annually. The PJM Interconnection, which manages the power grid for 13 states and Washington, D.C., reported that data center power usage accounted for $9 billion, or 174%, of increased power costs between 2024 and 2025, leading to an approximately $25 rise in monthly electric bills starting June 2025. Projections show that energy use from data centers in PJM's region is expected to double by 2033, contributing to further pressure on electricity prices. Additionally, the PJM capacity auction, which ensures power generators are available to meet peak demand, experienced an 833% price increase, adding around $12.5 billion to utility bills across the region, with consumer rates rising about 20%. The White House has warned that without increased energy output, electricity prices may spike further due to AI demand, underscoring the need for a strategic approach to manage this unprecedented growth in power consumption.