Data Center Expansion Drives U.S. Electricity Bills Higher, Strains Grids

President Donald Trump has pledged to expedite permits for data centers to accelerate the U.S. artificial intelligence industry's growth, drawing tech leaders like Mark Zuckerberg and Sam Altman to a White House dinner. However, experts warn that the rapid expansion of energy-intensive data centers is already driving up residential electricity prices, with states like Utah and Illinois experiencing surges of over 14%. Data centers consume a significant portion of U.S. electricity—about 4.4% currently—and their demand is expected to double or triple by 2028, contributing to rising utility costs and potential strain on the electric grid. In response, U.S. Rep. Alexandria Ocasio-Cortez successfully secured a study on the impact of data centers on consumer utility bills, promoting solutions such as load flexibility and demand response programs to mitigate costs and prevent blackouts. States like Pennsylvania are balancing the economic benefits of data centers with concerns over environmental impact and rising electricity rates, as AI-driven power consumption intensifies pressures on infrastructure. Industry and policymakers are considering renewable energy integration and innovative cooling technologies to address these sustainability challenges amid the data center boom.