⬤ The explosive growth of AI data centers is setting the stage for a sharp rise in electricity costs nationwide. High-power computing facilities needed to run services like ChatGPT are forcing utilities to upgrade grids and build new generation capacity, with those costs getting passed on to all customers—not just AI users. Data centers already consumed 4.4% of total U.S. electricity in 2023, and projections show that figure jumping to between 10% and 12% by 2028.
⬤ AI workloads are especially energy-intensive. They require dense server clusters running nonstop with heavy cooling demands, putting constant strain on regional power systems. To keep up, utilities are fast-tracking construction of new plants and expanding transmission infrastructure to avoid reliability issues. The problem is that building these facilities costs billions and takes years, with every customer footing part of the bill regardless of whether they use AI services.
⬤ Electric bills could rise by roughly 25% in the coming years as a direct result. That's a major shift in how energy demand is shaping up in the digital age. AI has become central to business operations and everyday apps, but the broader economic impact is now showing up in monthly utility statements. As data center construction accelerates, the connection between advanced computing and national energy use is becoming a defining factor for both household budgets and long-term infrastructure planning.
Usman Salis
Usman Salis