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AI Data Centers Face Intensifying Scrutiny Over Power Costs as Industry Case Fails to Land

Fresh analyses challenge claims that data centers are driving household rate hikes.

Overview

  • Senate Democrats have opened a probe into whether hyperscalers and utilities are shifting grid-upgrade costs onto households, with disclosures due by Jan. 12, 2026.
  • Technology firms say projects pay their full freight and can even lower average rates, yet reporting finds their messaging is failing to sway wary regulators and communities.
  • The Energy Department estimates data centers used about 4.4% of U.S. electricity in 2023 and projects a rise to roughly 6.7% to 12% by 2028.
  • Lawrence Berkeley National Laboratory found states with faster load growth from 2019 to 2024 generally saw smaller retail price increases, a result some experts say may not persist as nationwide demand accelerates.
  • Utilities and industry groups cite permitting and transmission bottlenecks as the main price pressures, noting large customers often fund substations and other grid assets, while interconnections can take four to seven years even when facilities are built in under two.