The increased use of high-demand computational power by businesses and organizations is driving up electricity consumption, leading to higher bills for consumers across the U.S.
Why it matters: The proliferation of data-intensive applications is creating additional strain on the nation’s power infrastructure, particularly during peak hours when the demand for electricity spikes due to the operational needs of data centers.
The details:
- Energy companies warn that this phenomenon could be exacerbated by the simultaneous occurrence of a dangerous heatwave affecting large parts of the country from the Southeast to the Upper Midwest, putting further pressure on the electrical grid.
- Experts urge households to brace for potential price hikes and consider adopting energy-saving measures to offset the rising costs, such as using energy-efficient appliances, adjusting thermostats, and being mindful of peak electricity usage times.
- Severe weather threats for the Midwest and potentially strong storms for the East Coast could further impact the stability of electrical supply in these regions.
For a large swath of the US, data centers are driving energy prices higher. Wholesale electricity prices are up 22% from 2024, and ratepayer advocates warn that Big Tech’s energy demand is hitting consumer wallets.
The impact:
- Customers of PJM Interconnection, the biggest regional power grid operator in the US covering 67 million customers, could see their bills go up next year.
- PJM’s territory spans thirteen states from the Midwest to the East Coast, including areas where data centers are rapidly expanding, such as Data Center Alley in Northern Virginia and Columbus, Ohio.
- After a decade of little to no growth, electricity demand in the US is expected to grow 2.5% annually through 2035, driven largely by data centers, according to the Bank of America Institute.
In Maryland, Gov. Wes Moore’s accelerated green energy agenda is being tested as demand for electricity surges, driving up prices to record highs for consumers.
The controversy:
- PJM Interconnection warns that a shrinking energy supply is colliding with rapid economic growth, despite Moore’s claims that there’s no evidence his policies are increasing electricity bills for residents.
- Maryland, which already imports the majority of its energy, has lost 6,000 MW of electricity since 2018, while adding only 1,600 MW, according to PJM.
- Moore has made offshore wind a priority, aiming to reach 100% carbon-free energy generation by 2035, but current green energy initiatives aren’t keeping up with the demand, and new supply is lagging.
The bottomline: As data centers continue to drive up electricity consumption and prices, policymakers face the challenge of balancing green energy initiatives with the need to ensure an adequate and affordable energy supply for consumers.
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— PJM Interconnection (@pjminterconnect) July 27, 2025
We should build more generating and transmission capacity rather than making consumers pay more. https://t.co/qoAAOeeY50
— Megan McArdle (@asymmetricinfo) July 27, 2025