The Energy Secretary tells me that data centers are not responsible for Americans paying higher utility bills, but consumer advocates say Americans are footing the bill for the rapid expansion of these data centers. Across the country, pushback is growing against what’s powering artificial intelligence. How many people here are concerned about the data center? Raise your hand. Our Get the Bank’s data team found more than 2300 data centers are currently up and running nationwide. Another 1600 are in planning or construction. President Trump has signed executive orders to fast track permits to build data centers, but the president has also said that tech companies should pick up the. Have for their own power consumption. If they had to rely on the grid, they wouldn’t have any power. You wouldn’t have any power for anything. We pressed the Energy Secretary. Are Americans right now paying higher utility costs in your opinion, for data centers? In the short answer, no. Americans, Americans are not paying higher prices because of data centers. Secretary Wright actually argues the opposite, saying more demand from data centers can help fuel lower prices. Understand people seeing this big industrial development. They’re concerned about it, but it is *** pathway to lower prices, not higher. One recent study backs up the Secretary’s comments, but others suggest the demand can overload the grid. In my lifetime, I don’t think we’ve seen such *** significant growth in demands and therefore significant increases in costs and prices. Consumer advocates say it’s already visible in certain areas. Customers are paying about 30. Do *** month on average more than they were *** year ago for the same service, and those costs are largely driven by data centers. David Lapp represents ratepayers in Maryland, which shares an electric grid with neighboring Virginia. Our data team found that state has the most data centers in the country. This is *** proposal, he says. Regulations have to change. The regulatory system has been built around gradual. And sort of universal growth and that’s where data centers break the paradigm. They are not gradual and they’re not universal. They’re local and they’re massive. Some major tech companies like Microsoft and Anthropic say they are willing to pay more of the infrastructure costs associated with data centers, but consumer advocates say those agreements don’t always protect ratepayers. In Washington, Christopher Sales.
Energy secretary: Data centers don’t raise your power bill; critics disagree
As the White House backs rapid data-center growth, the energy secretary says costs won’t rise. But advocates and researchers warn that demand is pressuring grids and bills.
As data centers continue to expand across the United States, a debate has emerged over whether they are contributing to rising electricity bills, with differing opinions from government officials, experts and consumer advocates.The Get The Facts Data Team has identified over 2,300 operational data centers nationwide, with another 1,613 in planning or construction.President Donald Trump has signed executive orders to expedite permits for building data centers, but he also believes tech companies should “pick up the tab” for their power consumption and build their own power plants.”If they had to rely on the grid, they wouldn’t have any power. You wouldn’t have any power for anything,” Trump said.In a statement, White House spokesperson Taylor Rogers touted agreements the president has secured with companies like Microsoft and OpenAI while saying, “More announcements to come soon!”When Hearst’s Washington News Bureau asked Energy Secretary Chris Wright if Americans are paying higher utility bills because of data centers, he stated, “I think the short answer is no. Americans aren’t paying more for data centers.”He further argued that increased demand from data centers could actually help lower prices.”I come back to that point, a data center is actually a way to drive demand up and prices down,” Wright said, adding that people should not be opposing the data centers based on cost. “There’s a perception there, but the perception is incorrect. I understand people seeing this big industrial development, they’re concerned about it, but it is a pathway to lower prices, not higher.”Others suggest that the demand from data centers could overload the grid.Michael Blackhurst, executive director of the Open Energy Outlook Initiative at Carnegie Mellon University, said, “I don’t think we’ve seen such a significant growth in demand and therefore significant increases in costs and prices.”Modeling from the Open Energy Outlook Initiative finds that rapid growth in data centers and crypto mining could raise U.S. power generation costs by about 8% by 2030. According to the report, data center and cryptocurrency mining will increase electricity demand by 350% by 2030.Researchers found that if demand continues to rise without major grid upgrades, generation costs could increase nationwide, with some high-growth regions facing much sharper price hikes.David Lapp, a lawyer who represents ratepayers in Maryland, said that in Baltimore, “Customers are paying about $32 a month on average, more than they were a year ago for the same service, and those costs are largely driven by data centers.”Lapp emphasized the need for regulatory changes, stating, “The regulatory system has been built around gradual and sort of universal growth, and that’s where data centers break the paradigm. They are not gradual and they’re not universal; they’re local and they’re massive.”Last month, the Trump administration and a bipartisan group of governors publicly urged PJM Interconnection, the operator of the nation’s largest electric grid, to take urgent steps to prevent electric bills from rising by boosting power supplies.Major tech companies like Microsoft and Anthropic have expressed willingness to cover more infrastructure costs.In several states, including Georgia, Maryland, and Virginia, there are considerations for moratoriums on new data centers until the impact on power bills and the grid is studied. Lawmakers in Congress have introduced bills aimed at insulating consumers from data center-related costs and increasing transparency around energy use and infrastructure spending.
As data centers continue to expand across the United States, a debate has emerged over whether they are contributing to rising electricity bills, with differing opinions from government officials, experts and consumer advocates.
The Get The Facts Data Team has identified over 2,300 operational data centers nationwide, with another 1,613 in planning or construction.
President Donald Trump has signed executive orders to expedite permits for building data centers, but he also believes tech companies should “pick up the tab” for their power consumption and build their own power plants.
“If they had to rely on the grid, they wouldn’t have any power. You wouldn’t have any power for anything,” Trump said.
In a statement, White House spokesperson Taylor Rogers touted agreements the president has secured with companies like Microsoft and OpenAI while saying, “More announcements to come soon!”
When Hearst’s Washington News Bureau asked Energy Secretary Chris Wright if Americans are paying higher utility bills because of data centers, he stated, “I think the short answer is no. Americans aren’t paying more for data centers.”
He further argued that increased demand from data centers could actually help lower prices.
“I come back to that point, a data center is actually a way to drive demand up and prices down,” Wright said, adding that people should not be opposing the data centers based on cost. “There’s a perception there, but the perception is incorrect. I understand people seeing this big industrial development, they’re concerned about it, but it is a pathway to lower prices, not higher.”
Others suggest that the demand from data centers could overload the grid.
Michael Blackhurst, executive director of the Open Energy Outlook Initiative at Carnegie Mellon University, said, “I don’t think we’ve seen such a significant growth in demand and therefore significant increases in costs and prices.”
Modeling from the Open Energy Outlook Initiative finds that rapid growth in data centers and crypto mining could raise U.S. power generation costs by about 8% by 2030. According to the report, data center and cryptocurrency mining will increase electricity demand by 350% by 2030.
Researchers found that if demand continues to rise without major grid upgrades, generation costs could increase nationwide, with some high-growth regions facing much sharper price hikes.
David Lapp, a lawyer who represents ratepayers in Maryland, said that in Baltimore, “Customers are paying about $32 a month on average, more than they were a year ago for the same service, and those costs are largely driven by data centers.”
Lapp emphasized the need for regulatory changes, stating, “The regulatory system has been built around gradual and sort of universal growth, and that’s where data centers break the paradigm. They are not gradual and they’re not universal; they’re local and they’re massive.”
Last month, the Trump administration and a bipartisan group of governors publicly urged PJM Interconnection, the operator of the nation’s largest electric grid, to take urgent steps to prevent electric bills from rising by boosting power supplies.
Major tech companies like Microsoft and Anthropic have expressed willingness to cover more infrastructure costs.
In several states, including Georgia, Maryland, and Virginia, there are considerations for moratoriums on new data centers until the impact on power bills and the grid is studied.
Lawmakers in Congress have introduced bills aimed at insulating consumers from data center-related costs and increasing transparency around energy use and infrastructure spending.
