AI data center boom set to add $23 billion to U.S. power bills

July 14 — Research cited by Fortune shows that the rapid buildout of AI-focused data centers in the U.S. is pushing up electricity costs for the public. PJM, the market monitor overseeing the power grid across 14 Mid-Atlantic and Midwestern states, estimates that incremental data center demand will add about $23 billion in costs for electricity customers, with the burden expected to last at least through the end of 2028. The research notes that while major technology companies have pledged to fund new power infrastructure, regulated grid-related investments such as transmission lines, substations and system upgrades are typically socialized across ratepayers. As a result, part of the expense could still be passed on to households and small businesses. It also found that some data centers can lower their grid charges by curtailing usage during periods of peak demand, reducing costs tied to peak load. Even so, their overall power consumption remains substantial, meaning their direct cost share may be smaller than the strain they place on the system. Analysts said that as AI infrastructure development accelerates, disputes over cost-allocation rules, data center power pricing and rising residential electricity rates are becoming pressing issues for U.S. energy regulators.