On Wednesday, a group of seven major tech companies, including Amazon, Microsoft, and Alphabet, signed a “Ratepayer Protection Pledge” aimed at preventing AI-related electricity costs from being passed on to consumers. This comes amid rising electricity bills attributed to increased electricity demand from AI data centers, which accounted for 4% of U.S. electricity use in 2024 and is projected to rise by 6-12% by 2028, according to the U.S. Energy Information Administration.
Recent forecasts indicate that new demand from data centers could push electricity costs significantly higher, with an estimated $9.3 billion increase in capacity payments in the PJM Interconnection region alone, translating to potential monthly bill hikes of $18 in Maryland and $16 in Ohio. Additionally, a study by Carnegie Mellon University predicts an 8% increase in the average U.S. electricity bill by 2030 due to the expansion of data centers.
The hyperscale data centers typically consume 50-100 megawatts, equivalent to tens of thousands of homes. By 2030, Bain & Company estimates that AI compute in the U.S. will require 100 gigawatts of new power capacity, almost half to be generated domestically. As communities voice concerns over rising costs, the tech giants’ pledge may enable smoother expansion of data center infrastructure necessary for AI growth.
