The rapid buildout of AI-driven data centers is reshaping America’s power grid and driving up consumer electric bills, even before many facilities are built.
A watchdog report for PJM Interconnection — the nation’s largest grid, serving 65 million people — warns that households will shoulder $16.6 billion in future power costs from 2025 to 2027, with $15 billion tied directly to anticipated data-center demand. Illinois, Ohio, and Virginia have already seen double-digit price spikes.
Yet analysts say the forecasts may be inflated. Developers are filing speculative requests in multiple states, and utilities fear building costly plants and transmission lines that data centers may never use.
The AI Revolution is so massive that electricity prices are moving in a literal straight line higher.
— The Kobeissi Letter (@KobeissiLetter) September 1, 2025
Energy is the new limiting factor to AI growth. pic.twitter.com/ZCy6l2UM3W
Companies like Constellation and Vistra have publicly warned the projections appear overstated.
Some utilities, such as AEP in Ohio, have imposed stricter rules forcing data centers to pay for most of the power they claim to need — measures that sharply reduced speculative requests.
Critics argue that without tighter oversight, consumers risk being stuck with “stranded costs” for unneeded infrastructure.
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TIPP Staff
TIPP Staff
