AI Data Centers Drive Energy Costs Up Across Multiple US States

The rapid expansion of AI data centers is significantly increasing energy demand, driving up electricity costs for residents in states like Virginia and Illinois. Virginia, heavily reliant on imported energy through the PJM regional transmission organization, faces nearly doubled energy needs due to AI data centers, with ripple effects expected across multiple states. Infrastructure projects like the proposed Mid-Atlantic Reliability Link and Valley Link transmission lines, intended to supply power to these centers, may impose substantial costs on states without their own data center industries, such as West Virginia. In Northern Illinois, home to 154 AI data centers, the strain on the power grid is already contributing to rising electric bills despite tax incentives aimed at attracting tech companies. To meet these escalating energy requirements, major technology firms including Google, Meta, Blackstone, and CoreWeave are investing billions into advanced AI data center infrastructure and related energy projects within the PJM region. These investments aim to bolster AI capabilities while addressing the infrastructural and energy challenges posed by the growing demand for data processing and storage.