As electric bills rise, evidence mounts that data centers share blame. States feel pressure to act

KEY TAKEAWAYS:

Data centers drive major power demand, raising bills

States consider higher rates to protect consumers

Critics warn of costs shifting to households, businesses

Proposals include specialized rates and self-procured power

Amid rising electric bills, states are under pressure to insulate regular household and business ratepayers from the costs of feeding Big Tech ‘s energy-hungry data centers.

It’s not clear that any state has a solution and the actual effect of data centers on electricity bills is difficult to pin down. Some critics question whether states have the spine to take a hard line against tech behemoths like Microsoft, Google, Amazon and Meta.

But more than a dozen states have begun taking steps as data centers drive a rapid build-out of power plants and tr