Waco residents could feel the pinch as data centers push electricity prices higher
New research from the Federal Reserve Bank of Dallas suggests that the growth of AI data centers is contributing to higher electricity prices nationwide, with Waco residents already experiencing increases of $50-60 a month. This trend is expected to continue impacting electricity costs through 2028, affecting household budgets.
Reporter Alexa Conroy in Waco, Texas, highlighted concerns among local residents regarding rising electricity bills, attributing the increases to the growing demand from artificial intelligence (AI) data centers. Waco resident Lizzie Kim reported her electric bill had increased by $50 to $60 per month, a sentiment echoed by fellow resident Kelly Shaw, who noted a similar $50 monthly increase. Both expressed concern over the impact on their household budgets, diverting funds from necessities like food or recreational activities.
New research from the Federal Reserve Bank of Dallas indicates that data centers have already driven average wholesale electricity prices up by an estimated 2 to 6 percent nationwide. While residents like Kim initially attributed the hikes to a hot summer or outdated local infrastructure, the study points to a broader trend. Although the research does not predict an immediate drastic jump in household bills, it warns that the increasing demand from data centers could continue to exert upward pressure on electricity costs until at least 2028.
Utility company Oncor, when contacted, cited weather as the primary factor influencing changes in electricity bills on their website. However, the report from the Federal Reserve Bank of Dallas suggests that as more AI data centers become operational, higher electricity bills could become a reality for consumers in the future.