AI Policy & Regulation
13h ago
Rising electricity costs linked to data centers may increase by over 50% in some states by 2030
May 19, 2026
AI Summary
A recent study indicates that the expansion of data centers, driven by artificial intelligence, could lead to significant increases in electricity costs across the U.S. by the end of the decade. In some states, such as Virginia, costs could rise by as much as 57%, prompting public concern and resistance to new data center developments.
- The share of U.S. electricity use from data centers increased from 1.9% in 2018 to 4.4% in 2023.
- By 2030, national average wholesale electricity costs could rise between 6% and 29%, largely due to data center expansion and cryptocurrency mining.
- In Virginia, electricity generation costs could increase by up to 57% due to the data center boom.
- Data centers accounted for a 22% surge in grid power usage last year and could represent up to 17% of total U.S. electricity usage by 2030.
- Utilities are expected to rely heavily on natural gas to meet the growing demand, which could lead to increased price volatility.
- The study suggests that data centers may also utilize underutilized coal plants, potentially increasing CO2 emissions from electricity generation by up to 28% by 2030.
- Renewable energy sources like wind and solar are crucial for meeting demand, but their effectiveness is heavily influenced by policy incentives.
- Without federal clean energy incentives, natural gas could provide about 70% of the additional generation needed for new data centers.
- Public opinion is shifting against data centers, with 70% of Americans opposing their construction near homes due to concerns over local resource impacts and rising utility costs.
- In 2025, utilities are seeking approval for $31 billion in rate increases, reflecting growing economic anxiety among households.
- Local opposition has stalled or halted over $156 billion in planned data center projects across the U.S. last year.
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