Affordability: Data Center Growth & Skyrocketing Energy Bills
- The Data Center Boom: What’s Driving the Growth
- Energy Demand and Strain on the Grid
- Who Really Pays? Rising Energy Costs and Affordability
- Policy and Politics: Growing Backlash Over Energy Costs
- Balancing Growth With Sustainability and Fairness
- Final Thoughts: Finding Solutions That Protect Affordability
Across the United States, electricity bills are soaring, and families are struggling to pay them. While inflation, fossil fuel prices, and aging infrastructure all play a significant role, it’s the explosive growth of energy-hungry data centers that has people concerned. As states race to attract tech investment with things like fast permits and lower electricity rates, the big question everyone else is asking is why residents are footing the bill for utility upgrades to accommodate these facilities.
The Data Center Boom: What’s Driving the Growth
Data centers are massive buildings that house servers, computer storage, and networking systems, along with the power and cooling systems that run them.
From the Cloud to AI: An Explosive Demand for Power
Some time ago, we started using the cloud to store data for its convenience. We also started doing more crypto mining and transactions; then, there was the boom in online streaming as people canceled their cable TV. This has been driving data center growth for years—but then came along AI.
Artificial Intelligence (AI) already plays a massive role in our daily lives. It helps us track and predict weather, optimize energy production and distribution on a commercial scale, and at home, AI enhances energy efficiency through smart devices.
However, since artificial intelligence requires vast computing power and constant cooling, this makes AI more energy-intensive than anything that came before.
Why States Are Competing to Attract Data Centers
The current administration is pushing for the U.S. to become the global leader in artificial intelligence. Many states are now aggressively competing to attract data centers with tax breaks, fast-tracked permits, and discounted electricity rates. They say they’ll bring construction jobs, tax revenue, and may invite other tech investors.
However, the employment is mostly temporary construction work, leaving the average citizen with nothing but higher electricity rates. This is fueling debate over whether the long-term costs outweigh the benefits for local communities.
Protect your family from rising power bills with a whole-home backup like the EcoFlow DELTA Pro Ultra X. Starting at 12kWh, it runs an average home, but its expandable capacity to 180kWh means it can run even the largest home or small business. Use your batteries when power rates are high, then recharge at night when rates are lower, or better yet, use solar panels and recharge them with free energy.
.png)
Energy Demand and Strain on the Grid
Electricity Consumption Surges Nationwide
U.S. electricity consumption hit a record high in 2024 after decades of little change, driven in part by data centers. The Energy Information Administration has predicted that consumption in 2026 will be even higher, largely due to growth in the industrial sector. This forces utilities to spend billions building more power plants and reinforcing local distribution systems.
In 2025, we also saw our highest electricity rates, which aren’t expected to decline in 2026. So, we may see even more household power cutoffs than the record set in 2025.
A Power Grid Under Pressure
Data center growth isn’t the only pressure on our grid. Natural gas prices rose 56% in 2025 compared to 2024. Since we get over 40% of our electricity from natural gas, this plays a huge role in power bills.
Furthermore, our electrical infrastructure is aging and has been undergoing numerous costly upgrades nationwide, which adds to our bills. Finally, the increase in frequency and severity of extreme weather is also driving demand, damages, and prices.
Who Really Pays? Rising Energy Costs and Affordability
How Data Center Growth Impacts Utility Rates
Even though the tech companies building data centers are major electricity consumers, they aren’t the ones paying for the new power plants and infrastructure that our utilities must build to support them. They are simply another customer, albeit a very large one that’s even being offered discounted rates in some states.
So, who pays for the upgrades? It’s spread across the entire customer base, regardless of how much power they use.
The Affordability Dilemma for Homeowners
For families already stressed by rising costs of food, healthcare, and housing, rising utility bills can feel like an invisible tax they’re forced to pay for the privilege of having data centers nearby.
Homeowners can protect their families from rising energy costs and power outages with an EcoFlow Whole-Home Backup Generator, especially when recharged with solar power.
Policy and Politics: Growing Backlash Over Energy Costs
As data center growth and energy costs continue to rise, consumers are increasingly asking why they should subsidize the energy demands of tech companies.
In states like Georgia, Virginia, New Jersey, Arizona, and others, there is a significant growing political backlash over rising energy costs and the proliferation of data centers. As a result, data centers are being postponed or canceled, especially in residential neighborhoods that don’t want their power bills to increase any further.
Balancing Growth With Sustainability and Fairness
Tech companies are increasingly turning to renewable energy to power data centers. Ideally, local small-scale solar farms would help reduce the need for additional infrastructure.
However, improved cooling systems, energy storage, and smarter grid management can help, but this requires coordination among utilities, regulators, and tech companies, which could take time.
No one is really arguing to stop digital growth. What consumers seem to want is fairness, so they aren’t left holding the bill for a massive tech company. Transparent rate structures, public consultation, and better long-term planning will be critical to maintain a reliable and affordable grid in the future.
.png)
Final Thoughts: Finding Solutions That Protect Affordability
If current trends continue, electricity demand from data centers will remain one of the fastest-growing sectors in the energy market. While these facilities are essential to our modern economy and daily lives, so is affordable electricity. The challenge for tomorrow is for tech companies, utility companies, and local, state, and federal regulators to work together to find a solution that prevents energy poverty for the average family. Until then, you can keep your home and family safe and powered up with an EcoFlow Whole-Home Backup Generator.
Home Backup
For press requests or interview opportunities, reach out to our media team
media.na@ecoflow.com