Did the AI boom raise your electric bill? Consumer Reports investigates

Electric bills are climbing across the country, jumping more than 20 percent in some states since last year. And as artificial intelligence becomes part of everyday life, consumer advocates warn the technology may be adding to the strain.

The AI boom comes with a hidden cost: data centers. These massive facilities house the servers and equipment needed to power the internet, cloud services, and AI tools. Since the introduction of ChatGPT a few years ago, Consumer Reports says data centers have been expanding rapidly across the country.

Nearly a thousand hyperscale data centers are reportedly in the works, and they require enormous amounts of electricity. Some can use as much power as a small city. That rising demand can put pressure on an already aging electric grid and may contribute to higher utility costs for households.

Consumer Reports says the concern is that regular utility customers could end up helping pay for the infrastructure needed to support those facilities. When data centers strain the grid, utilities may seek to recover costs through higher rates.

Areas with large clusters of data centers, such as Northern Virginia, have already felt the impact. Longtime Virginia resident John Steinbach says his electric bills have nearly doubled over the past decade, with winter bills averaging more than $300 a month.

Still, data centers are not the only reason electric bills are rising. Weather, natural gas prices, routine grid upgrades, and other factors also play a role. And utilities cannot simply raise rates on their own. Consumer Reports’ Nicole Greenfield explains that utilities must go through state public utility commissions, often called PUCs, before rate hikes are approved.

Those commissions regulate what customers pay for electricity, gas, and water. Consumers can attend hearings, submit comments, or file complaints before proposed rate increases are approved.

Consumer Reports says anyone concerned about a proposed data center or rising utility costs in their area should visit their state public utility commission’s website. There, residents can find information about hearings and learn how to submit feedback.

As AI-powered technology continues to expand, Consumer Reports says it’s important for consumers to understand not just how these tools work, but how the infrastructure behind them may affect household bills.