Electricity bills surge as data centres drive up costs across the US
States with concentrated tech infrastructure see utility bills rise at twice the national rate, prompting elected officials to demand companies cover their share.
Massive new data centres, built to power the AI industry, are being blamed for a dramatic rise in electricity costs across the US. Residential utility bills in states with high concentrations of these facilities, such as Virginia and Illinois, are surging far beyond the national average.
The escalating energy demand has caused a major capacity crisis on large grids like the PJM Interconnection, with data centre load identified as the primary reason for a multi-billion pound spike in future power costs. These extraordinary increases are being passed directly to consumers, making affordability a central issue for politicians ahead of upcoming elections.
Lawmakers are now targeting tech companies and AI labs, promising to challenge what they describe as ‘sweetheart deals’ and to make the firms contribute more to the infrastructure they rely upon.
Although rising costs are also attributed to an ageing grid and inflation, experts warn that utility bills are unlikely to decrease this decade due to the unprecedented demand from rapid data centre expansion.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
