US EditionAI Boom Leads to Record Costs on US Grid and Calls for New Plants
UNITED STATES, JUL 22 – AI-driven data centers have caused a 174% rise in power costs between 2024 and 2025, shifting grid upgrade expenses to regular energy consumers, a PJM report shows.
- Following a July 2024 auction that drove costs over 800%, PJM Interconnection saw record-high auction prices, increasing utility bills for consumers.
- Training a single ChatGPT-like chatbot uses energy equal to 100 homes annually, AI founder earlier this year said, highlighting the surge in AI energy demands.
- In a June report, Monitoring Analytics reported $9 billion of cost increases attributed to data center usage, highlighting the significant impact on electricity prices.
- Amid grid cost surges, New Jersey House members launched a PJM probe this month, as Dominion Energy and a local supplier proposed separate data center rate classes, and Oregon’s POWER Act passed last month.
- Facing increased demand, Monitoring Analytics reported that without new data centers, energy use would grow just 15% by 2040, and suggests requiring data centers to supply their own power generation.
16 Articles
16 Articles
AI Demand Drives Largest U.S. Electricity Auction Price to Record High
Demand for electricity from data centers handling AI technology drove the price of the largest electricity auction in the United States to a new record, exceeding last year’s all-time high by 22%. Organized by PJM Interconnection, the capacity auction covers 20% of American consumers and aims to ensure that there is enough generation to respond to spikes in demand, averting blackouts. At this year’s edition of the auction, the price was $329.17 …
AI boom leads to record costs on US grid and calls for new plants
Businesses and households served by the largest U.S. power grid will spend a record $16.1 billion to ensure electricity supplies—a result that prompted immediate calls from utilities and energy groups to build more generation amid the AI frenzy.
Chicago area sees spike in electricity costs as power-hungry data centers fuel AI boom: 'The primary reason'
While artificial intelligence has become an integral component to many industries across the country, the energy needed to power the technology has come at a great cost. In Chicago, the recent boom in data center development has caused electricity costs to soar. What's happening? As one of the largest cities in the United States, Chicago has long been known as a central hub for various industries throughout the years. And as we continue into th…
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