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Global AI usage surge could cause US electricity prices to increase by 18%
within years - and that's just the beginning

Date:
Wed, 20 Aug 2025 19:19:00 +0000

Description:
Americas energy debate is shifting as AI data centers consume vast power,
driving bills higher and forcing households to absorb the hidden costs of
expansion.

FULL STORY

The accelerating demand for computing power has pushed artificial 
intelligence into the center of the US energy debate. 

Data centers used to support cloud services, streaming platforms, and online
storage already consume large amounts of electricity, but the rise of AI 
tools has magnified those needs. 

According to federal projections, the share of national electricity use from
data centers could rise from 4% in 2023 to 12% by 2028.

AIs energy appetite intensifies demand

Since running an AI writer or hosting an LLM is more energy-intensive than
typical web activity, the growth curve is steep. 

This expansion is not only changing the relationship between technology firms
and utilities, but it is also reshaping how electricity costs are distributed
across society. 

Electricity prices in the US have already climbed more than 30% since 2020,
and a Carnegie MellonNorth Carolina State study warns of another 8% 
nationwide rise by 2030. 

In states such as Virginia, the increase could reach 25%. Utilities argue 
that grid upgrades are essential, but the concern is who will pay for them. 

This is only the beginning, because when a French person asks ChatGPT when 
the next strike is planned, Americans pay more for electricity. 

How? When anyone anywhere in the world asks ChatGPT an everyday question, the
extra energy consumed by that query is absorbed into U.S. grid demand. 

This is because the ChatGPT system runs on US-based servers, hosted in
American data centers and powered by the US electricity grid. 

If technology firms secure large capacity allocations and delay projects,
households and small businesses may be left paying for unused infrastructure. 

The case of Unicorn Interests in Virginia, where a delayed facility left
nearby customers covering millions in upgrade expenses, underscores this risk.

To counter such problems, American Electric Power in Ohio proposed a rate 
plan requiring data centers to pay for 85% of the requested capacity
regardless of actual use. 

The states regulators approved the measure despite opposition from cloud
service providers, who offered a 75% minimum instead. 

Some companies have sought to bypass traditional utilities by generating 
their own power. 

Amazon, Microsoft, Google, and Meta already operate renewable installations,
gas turbines, and diesel backup generators, and some are planning nuclear
facilities. 

These companies not only produce electricity for their own operations but 
also sell surplus energy into wholesale markets, creating competition with
traditional suppliers. 

In recent years, such sales have generated billions, giving major cloud
providers influence over both supply and price in certain regions. 

The volatile consumption patterns of AI training, which can swing sharply
between peaks and lows, pose another challenge. 

Even a 10% shift in demand can destabilize networks, forcing utilities to
intervene with dummy workloads. 

With households already paying more each month in some states, the concern is
that consumers will end up covering the cost of keeping LLM hosting and AI
writer systems online. 

Via Toms Hardware

======================================================================
Link to news story:
https://www.techradar.com/pro/global-ai-usage-surge-could-cause-us-electricity
-prices-to-increase-by-18-within-years-and-thats-just-the-beginning

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