Multiple states to see higher electricity bills due to soaring cost of new data center

An enormous transmission project in the mid-Atlantic is stirring up controversy, as ratepayers are expected to shoulder the costs of a proposed transmission line intended to serve new data centers in Northern Virginia.

According to the nonprofit Institute for Energy Economics and Financial Analysis, a section of the yet-to-be-built Mid-Atlantic Resiliency Link will be far costlier to construct than expected.

If you live in the bright orange-shaded region, a portion of your electric bill will be going to pay for a massive transmission project being constructed to serve new data centers in Virginia.

The cost of the project just more than doubled to $960 million. pic.twitter.com/momnRE9DcK

— Ben Inskeep (@Ben_Inskeep) March 26, 2026

When approved by transmission operator PJM in 2023, according to the IEEFA, the line was projected to cost nearly $441 million. Now, energy company NextEra expects the line will cost closer to $960 million, more than doubling the earlier estimate.

The line would primarily run through West Virginia, although sections of it would also be built in Maryland, Pennsylvania, and Virginia. Northern Virginia has become central to America's data center buildout, with several outlets naming the region the "data center capital of the world."

IEEFA also claims that West Virginians specifically will be burdened by this project, stating that "the cost to West Virginia ratepayers—who will receive no benefits from the line—could top $570 million."

But while these massive investments in data center infrastructure are happening across the country, many people rightly fear that these super-energy-intensive buildings will raise their electricity costs, in addition to straining water resources. 

According to a Consumer Reports survey, nearly 4 in 5 Americans have some level of concern that these data centers will raise their energy bills. 

And unfortunately, these fears of increased bills have already come to fruition for many Americans as AI data centers pop up around the country at an increasingly fast rate, requiring significant investments in energy generation but also in transmission infrastructure. 

The tech companies constructing these AI data centers claim that they will bring jobs and economic flourishing in addition to providing numerous benefits through their AI tools. Yet it's critical that their development doesn't hurt the average American's ability to pay their utility bills.

While this transmission line still requires multiple state public utility commissions to approve the project, it's clear that consumers shouldn't be taking on the financial burdens of AI data center buildout. This is especially true for ratepayers who won't see any benefit of the project.

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