Electricity prices have risen across much of the United States over the past several years, in part due to higher fuel costs, grid upgrades and extreme weather.
However, there’s another reason you might be stuck with an ever-growing electricity bill: the skyrocketing number of new artificial intelligence (AI) data centers.
While AI infrastructure is not the sole cause of rising utility bills, several states are increasingly worried about whether the massive power needs of new data centers are pushing costs higher for households and businesses.
“When those costs are spread across everyone’s bill, ordinary customers are financing infrastructure for some of the richest companies in the world,” Michael Ryan, finance expert and founder of MichaelRyanMoney.com, told Newsweek.
Why It Matters
The United States is in the midst of an unprecedented AI infrastructure boom.
While data centers currently consume roughly 4 percent of U.S. electricity, there will likely be significantly higher demand over the coming years as companies race to build facilities supporting AI models.
Across the country, billions of dollars are going toward new power plants and transmission lines—and fierce debate is emerging as Americans battle over who should pay for those investments: the tech companies or everyday residents.
States Where Data Centers Are Being Linked to Higher Costs
Virginia
Virginia has one of the world's largest concentration of data centers, with Northern Virginia's "Data Center Alley" serving as one of the most important internet hubs globally.
However, the cost of new transmission infrastructure needed to support the region’s continued growth is a major concern for residents.
“A data center should be treated like a new real estate development: the supporting infrastructure must be identified, priced and funded before construction begins,” Arie Brish, business professor at St. Edward’s University, told Newsweek.
“The data-center operator, utility, regulators and local authorities should negotiate a binding agreement determining who pays for new generation, transmission lines, substations, backup capacity and other grid upgrades."
Texas
Texas has also emerged as a major destination for AI investment and large-scale data center construction.
Grid operator ERCOT has repeatedly warned that electricity demand could surge because of new industrial loads, including AI facilities.
“The Americans most exposed are residents in areas where data-enter growth is concentrated and the grid is already tight,” Ryan said. “Especially lower income families, retirees on fixed incomes, renters and small businesses that have little ability to reduce or offset higher bills.”
Georgia
Georgia has also become a focal point in the national debate. Rising electricity costs and rapid data center growth became an issue in state utility commission elections, and residents in several communities have organized opposition efforts against the developments.
Last year, Democrats voted out two Republican incumbents for seats on Georgia’s utility regulatory commission due to continued frustration with electricity costs.
Georgia Power has since proposed spending $15 billion to increase its power generating capacity as a way to meet demand from the ever-growing data centers.
Ohio, Illinois and the PJM Region
States served by the PJM Interconnection, including Ohio and Illinois, have also faced growing scrutiny over the rising power demand from data centers and how it affects long-term electricity costs.
Residential Electricity Costs by State
Data Center Opposition Is Spreading Across America
Community opposition to data centers has expanded dramatically, and there are now organized groups across roughly 40 states.
For many, the issue boils down to electricity demand and higher utility bills. But AI data centers can also bleed into an area’s water consumption, noise and even the environmental impact.
Residents in communities from Virginia and Georgia to Utah, Texas and California have all challenged AI projects through lawsuits and local political campaigns. But the backlash is only likely to grow.
“I think what is most interesting is that the backlash, especially when coordinated properly, does seem to win at the county level, but not at the rate case or the utility dockets,” Arif Gasilov, partner for natural resources and built environment at Gasilov Group, a U.S.-based environmental consultancy, told Newsweek.
“So it has the potential to stop or halt individual data centers while not really impacting electricity bill increases, because the bill is set in public utility commissions and tariff dockets that nobody is protesting at.”
Last month, major power grid operator PJM projected that a $6.3 billion increase in consumer electricity costs over the next three years will be mostly attributable to data center demand.
Largely in response to these types of findings, resistance has increasingly become a national movement. Many feel the economic benefits of the data centers are being overstated while communities are mainly just left with higher infrastructure costs and more demand on water supplies and electrical grids.
To address some of these concerns, major tech companies Microsoft and Anthropic made commitments to cover any additional electricity costs as a result of its data centers, but not everyone is convinced it will be enough.
“The anger is justified and it is already changing the rules,” Ryan said.
“Federal regulators are now pushing grid operators to prevent cost shifting and speculative projects. Public opposition may stop some facilities and slow others, but it probably will not stop the AI buildout nationally. It will change where projects are built and who pays for them.”
President Donald Trump last month announced the Ratepayer Protection Pledge, a voluntary and non-binding measure urging companies building large AI facilities to pay for the additional power infrastructure required to serve them, rather than residential and business customers.
“President Trump is calling on the leading United States hyperscalers and AI companies to build, bring, or buy all of the energy needed for building and operating data centers, paying the full cost of their energy and infrastructure, no matter what,” the White House said in a release.
Some States Have Little or No Data Center Presence
At the moment, data center development has been highly concentrated. While states like Virginia, Texas, Ohio, Illinois, Georgia and Pennsylvania are experiencing significant growth, some states like Alaska and Vermont have little to no major data center construction underway.
Power availability, fiber connectivity, and even climate and land costs all play a role in where companies choose to build.
“AI facilities can require enormous amounts of electricity and, in some locations, significant water resources, and those demands trigger increasing concerns about utility bills and whether or not communities can actually handle the infrastructure needed,” Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“At the same time, it's important to recognize that the impact is not one-sided: these projects can also bring jobs and tax revenue, so the real policy challenge is making sure the costs are not shifted onto residents while all benefits primarily shift to companies.”
What Happens Next
As AI investment accelerates, more states are considering legislation designed to ensure data center developers pay a larger share of the costs associated with the new power infrastructure.
So far, 27 states have advanced legislation requiring developers to cover their data center energy costs, according to MultiState. California, Ohio and Utah currently have laws that surpass the federal government’s Ratepayer Protection Pledge.
“The bipartisan backlash is understandable,” Beene said. “Many communities want a stronger say in projects that can permanently reshape their neighborhoods, and while i