AI Data Centers Push Up U.S. Power Costs by $23 Billion Through 2028, Study Shows

According to Fortune, AI data centers' rapid expansion has driven up electricity costs for U.S. utilities by an estimated $23 billion through at least the end of 2028, according to the PJM market monitor, which oversees the power grid serving 14 states in the mid-Atlantic and Midwest.

While major tech companies have pledged to cover new power infrastructure costs, shared expenses for transmission lines, substations, and grid upgrades are typically distributed by regulators, potentially shifting some costs to residential and commercial users. Data centers can reduce their allocated peak-load expenses by adjusting consumption during peak hours, but they continue consuming substantial power, meaning their actual costs may fall short of the strain they place on the grid.