Data centers currently consume around 4.4% of U.S. electricity, projected to escalate to 6–12% by 2028, and could account for nearly half of all growth in power demand by 2030 as AI and cloud applications expand . In regions like Ohio, Virginia, and Pennsylvania, increased demand has driven wholesale capacity prices dramatically higher—capacity auction costs jumped 833% recently, with data centers responsible for roughly 75% of the increase .

That additional demand means utilities are investing in new power plants and grid upgrades, traditionally paid for by all ratepayers—so residential customers end up footing a major portion of the costs, even if they don’t directly use AI services .

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What That Means for Your Bills

From May 2024 to May 2025, average U.S. residential electricity prices rose by about 6.5%, partly due to surging data center demand . In cities like Columbus, Philadelphia, and Pittsburgh, bills have climbed by $10–$27 per month, with power capacity costs linked to data center expansion driving the increases . One analysis estimated data center–related upgrades added over $9 billion to energy costs across PJM grid regions