Data Centers Drive US Electricity Costs Higher

Data centers, the backbone of the digital age, are driving up electricity costs across the United States. Two states, Virginia and New Jersey, have seen significant year-over-year hikes, with data centers accounting for a substantial portion of the increase.

Artificial intelligence programs, housed in these data centers, require vast amounts of power. This has led to a surge in electricity costs, with data centers responsible for 63% of price increases in the coming year, according to Monitoring Analytics.

Leaders in Virginia and New Jersey have yet to publicly acknowledge this during their campaigns. While they have offered tax breaks to attract tech giants, many lawmakers now question if the benefits outweigh the costs to constituents. Residents face rising utility bills and property tax assessments due to the presence of data centers.

Pennsylvania Gov. Josh Shapiro has suggested his state could withdraw from the PJM Interconnection system if costs for consumers are not controlled. The interconnected nature of power grids means cost increases can spread across multiple states.

As data centers continue to grow, so do their impacts on electricity costs. With states offering incentives to attract these facilities, lawmakers must now consider the full picture, including the rising utility bills for residents. Open dialogue and balanced policies are needed to ensure these centers benefit both the tech industry and the communities they serve.