If There’s Been A Spike In Your Power Bill, AI Data Centers Could Be To Blame — Even If You Don’t Live Nearby

AI data centers that continue to pop up across the United States are driving power costs to record highs — and consumers are left bearing the burden.

According to Bloomberg, Kevin Stanley, a blind Baltimore resident living on disability benefits, says his electric bill has surged about 80% over the past three years — despite living over an hour from northern Virginia’s “Data Center Alley.”

As a result, Stanley has found himself stretching supplies for his diabetes and sleep apnea, and occasionally relies on food banks to cut costs.

“They can say this is going to help with AI, but how is that going to help me?” Stanley said, Bloomberg reported. “How’s that going to help me pay my bill?”

Connor Waldoch, co-founder of Grid Status, an energy data analytics platform, says the surge in electricity demand from data centers is driving up utility bills, adding to the strain of rising costs for food, housing, and other essentials.

How AI Data Centers Are Driving Up Energy Costs

A Bloomberg News analysis of wholesale electricity prices across tens of thousands of U.S. locations found that monthly power costs have spiked by as much as 267% compared to five years ago in areas near significant data center activity. The analysis was based on data tracked by Grid Status.

Since electricity flows through state and regional grids, data center costs can impact even distant residents.

Last year, the three largest U.S. cloud providers — Amazon, Microsoft, and Google — spent over $200 billion on capital expenditures, much of it to build data centers. Spokespersons for all three companies say they aim to protect ratepayers and ensure they aren’t left to cover the costs of specialized infrastructure, per Bloomberg.

PJM Interconnection, operator of the largest U.S. electric grid, noted that a surge in data center development has pushed up electricity costs for consumers across Illinois to Washington, DC. With an increase of more than $9.3 billion over the 12 months starting in June, costs are expected to rise even more the following year.

Additional demand from the cryptocurrency industry, new manufacturing facilities, and the broader electrification of the economy — including EVs and electric heating — also contribute to the increase.

Mary Ruffine, who lives in Arlington, VA, watched her monthly power bill go from about $200 to $260. Though she can afford the increase, she’s frustrated that poorer households are bearing rising costs versus the companies building the data centers.

“I just feel like we are sharing the burden in an uneven way with these corporations that have billions of dollars,” Ruffine told Bloomberg. “And so we, the people, are the ones who are absorbing the costs for these data centers.”

Power demand from data centers in the U.S. is expected to double by 2035, reaching nearly 9% of total consumption. Some experts say this could mark the most significant surge in American energy demand since air conditioning became widespread in the 1960s.

Globally, data centers could account for over 4% of total electricity use by the same year.

“The reliability crisis is here now; it’s not off in the distance somewhere,” said former Federal Energy Regulatory Commission Chairman Mark Christie, Bloomberg reported.

Trump Blames Biden’s Climate Agenda And Renewable Projects For High Energy Bills

During his campaign, President Donald Trump promised to cut electricity prices in half within 18 months of taking office if he won. However, power prices have continued to rise since his January 2025 inauguration.

Experts warn the trend could worsen due to Trump’s “One Big Beautiful Bill Act” passing in July 2025, which pulls support for renewable energy like solar and wind.

As AFROTECH™ previously reported, citing CNBC, Trump blames renewables for the increase in electricity prices. He pointed to strain on PJM Interconnection where many coal plants have retired and data center demand continues to grow. The grid operator, which covers 13 states, saw a 22% jump in power capacity prices.

In a post on his Truth Social account on Aug. 20, 2025, Trump said his administration will not approve new solar or wind energy projects.

“Any State that has built and relied on WINDMILLS and SOLAR for power are seeing RECORD BREAKING INCREASES IN ELECTRICITY AND ENERGY COSTS,” Trump wrote.

“THE SCAM OF THE CENTURY! We will not approve wind or farmer destroying Solar. The days of stupidity are over in the USA,” he added.

White House spokeswoman Taylor Rogers also faults the Biden administration’s climate agenda and policies for today’s elevated energy prices. She credits Trump as “the only reason our country has not experienced blackouts and grid failures that would have occurred” during Biden’s tenure, according to Bloomberg.