AI Data Centers Are Driving Up Electricity Bills, Even for Non-Users

Artificial intelligence (AI) is transforming industries, but its growth comes with hidden costs. Across the U.S., electricity bills are rising for households, even for people who never use AI tools. The increases are steep enough to shock consumers and policymakers alike.

Energy Surge AI models like ChatGPT require massive amounts of computing power. The data centers that run them already consume about 4.4% of U.S. electricity (Harvard Law School). The International Energy Agency projects their demand could more than quadruple by 2030, making data centers one of the fastest-growing users of power.

Higher Bills Capacity market prices illustrate the scale of the problem.

2024/2025: $28.92 per Mega Watt/ day

2025/2026: $269.92 per Mega Watt/ day

2026/2027: $329.17 per Mega Watt/ day

That is nearly a tenfold increase in just two years (PJM, Utility Dive, IEEFA). Rising wholesale prices are already affecting consumers. In areas such as Chicago and New Jersey, residential electricity bills have jumped between 25% and 45% year-over-year, with data center demand cited as a contributing factor.

Environmental Impact

Most data centers run on fossil-fuel-dominated grids, driving up greenhouse gas emissions. Their cooling systems can consume millions of gallons of water each day, adding strain to ecosystems and communities, particularly in drought-prone regions.

Why Consumers (but not AI companies) Are Responsible For the Bill?

Because data centers draw power from shared grids, their rising demand drives up market prices. Current utility rules pass much of this cost onto the general public rather than directly onto the companies responsible for the consumption.

The Takeaway

AI brings tremendous opportunities, but its energy appetite is driving up household bills and straining the environment. Even those who do not use AI directly are paying the price. Sustainable practices and stronger policies will be essential to keep the benefits of AI from overwhelming communities and ecosystems.

Sources:

https://www.pjm.com/.../20250722-pjm-auction-procures...

https://www.utilitydive.com/.../pjm-interconnection.../

https://ieefa.org/.../projected-data-center-growth-spurs...

https://www.forbes.com/.../world-changing-ai-is-raising.../

https://www.newsweek.com/ai-data-centers-why-electric...

https://www.usatoday.com/.../why-is-my.../86024026007/

https://apnews.com/.../electricity-prices-data-centers...

https://www.nbcchicago.com/.../how-ai-data.../3821576/

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