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Data Centers Powering the AI Boom Are Pitting States Against Each Other

On November 4, election debates highlighted that AI-focused data centers are creating structural pressure on the PJM regional grid, with officials in New Jersey and Virginia lamenting rising power costs tied to the boom.
Tech investment and local leaders say data center campuses attract jobs and tax revenue in rural communities, but rapid AI growth intensifies electricity demand and local grid strain.
Data Center Map counts indicate Texas has 413 data centers, New Mexico 22, and Virginia hosts 666, while New Jersey has 82, with Dominion Energy planning a 9% rate increase this year.
Communities are protesting new data center projects, and Virginia Congresswoman Abigail Spanberger said `we are going to produce more energy here in Virginia and make sure that data centers pay their fair share`.
Policymakers note PJM connects Thirteen states and the District of Columbia, while new renewables and demand-response programs would have only marginal impact on data center energy demand.

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Data centers powering the AI boom are pitting states against each other

Just before her victory this fall, New Jersey Gov.-elect Mikie Sherrill jabbed at nearby Virginia, which also had a governor’s race, over its booming data center market.

14 days ago·Atlanta, United States

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