Big Tech's AI Data Centers Are Driving Up Electricity Bills for Everyone

Electricity rates for individuals and small businesses could rise sharply as Amazon, Google, Microsoft and other technology companies build data centers and expand into the energy business. Residential electricity bills increased at least $15 monthly for Ohio households starting in June due to data center demands, according to utility data and an independent grid monitor. A Carnegie Mellon University and North Carolina State University analysis projects average U.S. electricity bills will rise 8% by 2030 from data center growth, with Virginia facing potential 25% increases. Virginia regulators estimate residents could pay an additional $276 annually by 2030.

National residential electricity rates have already risen more than 30% since 2020. Tech companies' AI push requires data centers that consumed over 4% of U.S. electricity in 2023, with government analysts projecting consumption reaching 12% within three years. American Electric Power warned Ohio regulators that without new rate structures requiring data centers to pay more upfront costs, residents and small businesses would bear much of the expense for grid upgrades.

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