Short answer: data centers used about 4.4% of U.S. electricity in 2023, and a Department of Energy-funded study by Lawrence Berkeley National Laboratory projects that could reach 6.7% to 12% by 2028 (DOE, December 2024). Demand growth on that scale requires new power plants and transmission lines, and some of those costs can reach household bills, depending on where you live and how your state regulates utilities.
The numbers
| Year | Data center electricity use | Share of U.S. electricity |
|---|---|---|
| 2014 | 58 TWh | – |
| 2023 | 176 TWh | about 4.4% |
| 2028 (projected) | 325-580 TWh | 6.7%-12% |
For scale: 176 TWh is roughly what 17 million average U.S. homes use in a year (at about 10,400 kWh per home, based on EIA data).
How it can affect your bill
- Wholesale prices. When demand rises faster than supply, wholesale power gets more expensive. EIA forecasts 2026 wholesale prices about 11% above 2025, with a 41% jump in the PJM region, which spans much of the Mid-Atlantic and parts of the Midwest and hosts many data centers (EIA).
- Grid upgrades. New substations and transmission lines are often paid for through rates. Who pays (the data center or all customers) is decided in state rate cases.
- Capacity costs. In some markets, utilities pay generators to guarantee future supply; tighter supply raises those payments.
It’s one factor among several. Grid repairs, storm costs and fuel prices also push rates up; see why electricity bills keep rising. The EIA forecasts the average U.S. residential price rising from 17.3¢ per kWh in 2025 to 18.7¢ in 2027.
What some states and utilities are doing
Approaches under discussion or in place in various states include:
- Creating special rate classes so very large customers pay for the grid upgrades they trigger.
- Requiring long-term contracts or upfront payments from big new loads.
- Asking data centers to cut use during grid emergencies.
Rules differ by state and are changing quickly. Your state utility commission’s website lists open rate cases where the public can comment.
What you can do
- Know your rate and watch for rate case notices in your bill. See how to read your bill.
- Use less at peak times if you’re on a time-of-use plan; peak prices rise fastest when the grid is tight.
- Lock in efficiency gains that keep paying as prices rise: air sealing, heat pumps, LED lighting.
- Consider solar and storage if rates in your area are high and rising; see is solar still worth it.
FAQ
Is AI the only reason data center demand is growing? No. Cloud services, streaming and other computing also add demand; AI servers are one fast-growing part of it.
Will my bill definitely go up because of a nearby data center? Not necessarily. It depends on your utility, your market and how your state assigns costs.