A sharp increase in electricity bills is not just a result of imagination; it’s a harsh reality driven by the growing demand for artificial intelligence (AI). The largest power grid operator in the US, PJM Interconnection, reports that electricity usage is rising sharply this summer, with some areas seeing bills increase by as much as 20%. AI systems like ChatGPT and other generative tools are to blame.
Data centers supporting these AI systems are consuming up to 30 times more power than traditional data centers. As a result, the grid is struggling to keep up with the demand, leading to higher electricity costs for everyone. PJM’s territory now has the largest number of data centers in the world, and their contribution to the $9 billion increase in power costs between 2024 and 2025 is undeniable.
The strain on the grid is further exacerbated by the shutdown of fossil fuel plants due to state regulations, aging infrastructure, or market conditions. This, combined with permitting delays and rising costs for clean energy options like wind and solar, has resulted in a perfect storm that’s pushing electricity prices upwards.
Even if you don’t use AI tools yourself, your electric bill is likely to increase due to the growing power consumption from data centers. PJM customers can expect bills to rise by $25 or more per month, while commercial users may see prices climb nearly 30%.
To mitigate this issue, demand response programs are being rolled out, which pay large businesses to temporarily reduce their electricity use during periods of extreme demand. However, if the grid is unable to keep up with the demand, some regions may experience rolling blackouts.
In conclusion, AI-driven power surge is a pressing concern that’s affecting millions of households and businesses across the US. To mitigate this issue, individuals can take simple steps like unplugging electronics, upgrading to smart thermostats and LED lighting, and monitoring their energy usage with smart plugs or an electricity usage monitor.
Source: https://www.foxnews.com/tech/why-ai-causing-summer-electricity-bills-soar