Key facts
- Data centers are projected to add $6.3 billion in electricity costs for consumers and businesses across 13 states.
- An analysis uncovered $4.3 billion in previously obscured electricity infrastructure costs for data centers approved in 2024.
- These costs are part of an estimated $9.3 billion in data center electricity expenses expected between June 2025 and June 2026.
- Over 95% of identified transmission connection projects for data centers have passed costs onto local electricity bills.
- Data centers are projected to increase U.S. energy demand by 130% by 2030.
Consumers and businesses in 13 states are facing billions of dollars in additional electricity costs due to the growing demand from data centers. A new analysis by the Union of Concerned Scientists (UCS) revealed that an estimated $6.3 billion in charges are expected, with $4.3 billion of this amount previously obscured through opaque utility filings.
These newly identified costs are on top of an estimated $9.3 billion in data center electricity expenses projected to be paid by customers of PJM, a regional utility operator, between June 2025 and June 2026. PJM serves approximately 65 million people across 13 Mid-Atlantic and Ohio Valley states, plus the District of Columbia.
Mike Jacobs, a senior energy manager at UCS, uncovered these additional costs by analyzing utility filings in seven PJM states. He identified 130 projects approved in 2024 that will connect private data centers directly to the high-voltage transmission system. Over 95% of these projects passed their transmission connection costs onto local electricity bills.
Specific state costs identified include $239 million for Illinois, $107.5 million for Maryland, $14.5 million for New Jersey, $1.3 billion for Ohio, $491.7 million for Pennsylvania, $1.9 billion for Virginia, and $215.8 million for West Virginia. Jacobs criticized large tech companies for exploiting regulatory processes to shift billions of dollars in costs onto families.
Data centers are projected to significantly increase U.S. energy demand, with estimates suggesting a 130% rise by 2030. Regulators and utilities are urged to implement measures to protect consumers from these escalating costs.