Against the backdrop of an overheating planet and the rise of energy-hungry artificial intelligence tools, electricity demand and costs are also on the rise.
USA Today reported that recent data from the U.S. Energy Information Administration (EIA) showed that "between May 2024 and May 2025, the average retail residential price for 1 kilowatt-hour of electricity increased about 6.5%."
What's happening?
"Americans are paying more for electricity this summer" due in part to hotter weather, and partly because data centers are siphoning more energy for AI, the paper explained.
A study backed by the Department of Energy predicted that the demand for power from these data centers will increase threefold over the next three years, requiring as much as 12% of the U.S.'s total electricity supply.
Why is this concerning?
Residents of some states have already seen an increase in their electricity costs due to increased data center activity.
According to The Washington Post, areas serviced by PJM Interconnection — including Michigan, North Carolina, Virginia, Delaware, Maryland, New Jersey, Pennsylvania, West Virginia, Indiana, Kentucky, Ohio, Illinois, Tennessee, and the District of Columbia — have seen AI-related increases in their electricity costs.
"Electricity bills for some consumers in New Jersey have increased by 20% and in Ohio, prices rose between 10% and 15%," USA Today noted.
In early June, some residents in the PJM Interconnection provider region saw their utility bills rise by a staggering 180%.
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Additionally, a Jack Kemp Foundation report warned Virginia residents that their energy prices could increase 70% due to growing demand from data centers.
What can be done about rising energy prices?
While electricity costs vary based on local taxes, utility fees, and energy rates, installing solar panels can save customers thousands of dollars each year.
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