AI and Data Centers Drive U.S. Electricity Costs Up 42% Amid Surging Demand
CHICAGO, Ill. — Over the past decade, American households have seen their electricity bills rise by 42%, a surge largely attributed to the rapid expansion of artificial intelligence (AI) technologies and the data centers that support them. These facilities, which power everything from cloud computing to AI applications, are placing unprecedented strain on the nation’s electrical grid, prompting utilities and regulators to confront a growing energy crunch.
Data center electricity demand in the United States is projected to increase by 133% by 2030, according to the International Energy Agency. In 2024 alone, these centers consumed more than 4% of the country’s total electricity—equivalent to the annual power usage of Pakistan. By the end of the decade, their consumption is expected to rival that of France, underscoring the massive scale of this emerging challenge.
Calvin Butler, CEO of Exelon, which owns Commonwealth Edison (ComEd), the fourth-largest utility in the nation, highlighted the rapid growth in data center load on the grid. “ComEd’s peak load is roughly 23 gigawatts, and by 2030, data centers alone will account for 19 gigawatts,” Butler said. This surge in demand has led to a dramatic increase in connection requests, with potential projects totaling more than 30 gigawatts expected to come online by 2045.
“When you have increased demand and inadequate supply, costs are going to go up. And that’s what we’re experiencing right now,” Butler explained. Utilities are being forced to accelerate investments in new generation capacity, but the pace of construction is struggling to keep up with the rapid expansion of data center infrastructure.
The strain on the power grid is not only driving up costs but also raising concerns about energy reliability. The Department of Energy’s Office of Electricity has emphasized the need for grid modernization to manage these new loads effectively. Meanwhile, the Federal Energy Regulatory Commission (FERC) continues to oversee efforts to balance supply and demand amid shifting consumption patterns.
President Donald Trump has publicly stated that every AI plant being built in the U.S. will be self-sustaining with their own electricity, a vision that reflects the industry’s recognition of the challenges posed by grid dependence. However, experts warn that widespread adoption of such self-sufficient facilities remains years away.
As Americans grapple with rising energy bills, the intersection of AI technology and energy infrastructure highlights the complexities of modern power management. The U.S. Energy Information Administration projects continued growth in electricity demand driven by digital technologies, underscoring the urgency for innovative solutions that balance technological advancement with sustainable energy practices.
With data centers becoming critical to the digital economy, the nation faces a pivotal moment in ensuring its power grid can meet future demands without further burdening consumers. The coming years will test the ability of utilities, regulators, and technology companies to collaborate on building a resilient and affordable energy future.
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