Data Center Boom Drives Up Electric Bills Across U.S.
Residential electricity costs are surging in at least 13 states as artificial intelligence demand fuels construction of massive data centers, with some Americans paying as much as 267% more per month than five years ago.
In Georgia, the largest energy provider has imposed six rate hikes in three years while the state saw a boom in data centers. The average monthly bill jumped from $150 to $225, according to Patty Durand, founder of Georgians for Affordable Energy.
Carolyn Kayne, an Atlanta resident, has turned off her heat and water to manage costs. She now wears a ski suit indoors and lives in a small apartment at the back of her 3,000-square-foot home. "I guess maybe it is time to give up my home," Kayne said.
Industry and State Response
Georgia Power denies passing data center costs to residential customers. Aaron Mitchell, senior vice president for strategic growth at the company, said there is "no risk that residential customers will end up paying for the costs of this large growth, including data centers."
Last year, Georgia Power announced a rate freeze and agreed to use revenue from large customers like data centers to lower costs for residents.
Maine Gov. Janet Mills vetoed a bill this week that would have made the state the first to ban construction of new data centers. In her veto statement, Mills said she wanted to "examine and plan for the potential impacts of large-scale data centers in Maine, as the use of artificial intelligence becomes more widespread."
Durand warned that without stronger protections, "Data centers will add billions of dollars to costs to electricity rates in Georgia."
The surge reflects a broader trend: AI's computational demands require enormous amounts of electricity, and companies are building data centers in regions with cheaper power. That strategy works for businesses but shifts costs elsewhere - often to households with limited ability to absorb them.
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