The growing demand for electricity from AI data centers is driving up wholesale prices in the US, affecting millions of customers across 13 states. PJM Interconnection, a regional power grid operator covering 67 million people, saw its annual capacity auction result in wholesale electricity prices increasing by 22% from last year. This jump could lead to monthly electric bills rising by up to 5% for PJM’s territory.
The primary driver of demand growth is data center expansion, particularly in Northern Virginia and Columbus, Ohio. According to the Bank of America Institute, US electricity demand is expected to grow 2.5% annually through 2035, driven largely by data centers. Utility bills are rising faster than inflation, with residential customers facing a massive transfer of wealth from corporations.
Ratepayer advocates, such as People’s Counsel David Lapp in Maryland, are urging regulators to intervene on behalf of residential utility customers and small businesses. Lapp warns that “utility regulation is failing to protect residential customers” and contribute to an energy affordability crisis.
Source: https://www.businessinsider.com/electric-bills-rise-13-states-because-big-tech-data-centers-2025-7