The AI revolution is likely to drive up your electricity bill. Here's why.
Summary
Electricity bills in some U.S. states are expected to increase due partly to the growth of data centers that support artificial intelligence and other technologies. Data centers use a lot of electricity to power and cool their servers, contributing to higher overall electricity demand and costs for consumers.Key Facts
- New Jersey's public utilities board warned of up to a 20% rise in electricity bills starting June 1, linked mainly to data centers.
- Data centers nearly doubled in the U.S. from 2021 to 2024, with the largest numbers in Virginia, California, and Texas.
- Data centers require significant electricity not only to run but also to cool their equipment.
- AI applications, like training large language models, use about 10 times more electricity than typical internet searches.
- About 4.4% of U.S. electricity was used by data centers in 2023.
- Utilities are raising prices and building new infrastructure to meet increasing electricity demand.
- Higher natural gas prices, inflation, and more electric vehicles and buildings also contribute to rising electricity costs.
- Proposed legislation supported by President Trump could affect energy costs by changing tax credits related to energy use.
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