NASHVILLE, Tenn. (WTVF) — Consumers across the country are paying more for electricity, and Consumer Reports experts say the growing demand from data centers could add to the pressure on power bills.
The current artificial intelligence boom comes with a hidden price tag for some households.
Data centers, which power many online services and AI tools, require enormous amounts of electricity. Consumer Reports said their energy needs are adding to the financial strain families are already experiencing.
"Since the introduction of ChatGPT a few years ago, these data centers that house servers and other equipment needed to power the internet have been popping up all over the country," said Nicole Greenfield with Consumer Reports.
According to Consumer Reports, nearly 1,000 hyperscale data centers are currently in development. Some require as much electricity as a small city.
The concern is that utility customers often help cover the costs associated with the increased demand. Consumer Reports said large data centers can put additional strain on the nation's aging power grid and increase electricity demand, which can contribute to higher energy prices. Utilities may also seek rate increases to help offset infrastructure costs.
Communities with large concentrations of data centers have already seen concerns about rising costs. In Northern Virginia, longtime resident John Steinbach said his electricity bills have steadily increased.
"My electrical bills over the last 10 years have almost doubled. This last winter, I averaged paying over $300 a month for electricity," Steinbach said.
Consumer Reports noted that data centers are not the only factor affecting electricity prices. Weather conditions, natural gas costs, routine grid upgrades and other factors also play a role.
The organization also emphasized that utilities cannot raise rates without approval.
"If a utility wants to raise rates for its customers, it has to go to what's called a public utility commission. Every state and territory has one," Greenfield said.
Public utility commissions regulate what customers pay for services such as electricity, natural gas and water. Residents can typically provide feedback during commission hearings before rate increases are approved.
Steinbach urged residents to stay informed as data center development expands.
"Keep your eyes open and beware because when the data centers come, they will come fast — and you won't know what hit you," he said.
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