AI data centers enable the U.S. power grid to handle an additional $23 billion, while ordinary people end up sharing the cost without a say.

PJM, which is responsible for regulating the power grid across 14 states in the Mid-Atlantic and the Midwest, according to its market monitoring agency’s latest research, is mainly to blame for local electricity bills being increased by about $23 billion due to the explosive rise in electricity demand from AI data centers—and this bill will need to be footed at least through the end of 2028. Although several tech giants have pledged to pay their share, public power grid costs such as transmission lines and substations may ultimately still land on ordinary residents and businesses.
(Background: U.S. energy regulator FERC ordered six major grid operators to “accelerate” their AI data center interconnection application)
(Background supplement: Attorney Lin Shanglun’s column》When you ask what AI is eating today at noon, the world is reshaping the energy map for this question)

Key Takeaways

• PJM’s market monitoring agency estimates that electricity usage by AI data centers is the main reason for a $23 billion increase in local electricity bills, with the impact lasting at least through the end of 2028
• PJM’s power grid spans 14 states in the Mid-Atlantic and the Midwest; upgrade costs such as transmission lines and substations are largely allocated by the regulators
• Some data centers can reduce load during grid peak hours to avoid allocated costs, so the actual burden may be lower than the strain they put on the grid

The booming AI craze is quietly turning the bill into higher electricity charges for ordinary American households. According to Fortune, PJM—responsible for regulating the power grids across 14 states in the Mid-Atlantic and the Midwest—has, in its market monitoring agency’s latest research, identified that the added electricity demand caused by rapid data center expansion is the main driver behind about $23 billion in increased local power costs, and that pressure will persist at least until the end of 2028.

PJM is one of the largest regional grid operators in the U.S., covering all or part of 14 states and impacting tens of millions of users. The role of the market monitoring agency is to oversee pricing and competition for this massive power grid. When it points the finger directly at data centers, it effectively serves as official validation that the AI computing horsepower boom is raising everyone’s electricity bills.

Who pays the money? Ordinary people have to split it

On the surface, big players like Google, Microsoft, and Amazon have all promised to pay their fair share of the electricity they use. The issue lies in the word “public.”

Infrastructure such as transmission lines, substations, and grid upgrades are public facilities shared across the entire network; costs are usually allocated to all users by regulators. That means that even if tech companies pay their portion, some of the remaining public upgrade bill will still be passed on to residents and ordinary businesses.

The data center’s peak-avoidance calculation

More subtly, the study points to a detail that’s easy to overlook in peak-hour planning: some data centers can anticipate when the grid will reach peak electricity demand, and then proactively reduce load during those critical periods—nearly using no power.

A large part of grid costs are allocated based on peak load. As long as data centers avoid those peak moments, they can pay less toward grid costs—but they still consume electricity heavily at other times. The result is that the actual strain they impose on the grid is far higher than the costs they show on the allocated bill. To some extent, other electricity users end up sharing these costs.

Frequently Asked Questions

Why do AI data centers raise electricity bills for the general public?

Because grid upgrades such as transmission lines and substations are public facilities whose costs are allocated by regulators to all users. The surge in data center electricity use pushes up overall grid load; PJM’s monitoring agency estimates that just this one factor increases local electricity bills by about $23 billion, with some passed on to residents and businesses.

What is PJM? What does it manage and regulate?

PJM is one of the largest regional grid operators in the U.S. It schedules electricity for all or part of the regions across 14 Mid-Atlantic and Midwest states, serving tens of millions of users. Its market monitoring agency is responsible for overseeing power market prices and competition, and this study is coming from that monitoring agency.