Data Centers and Electricity Prices: It’s Not as Simple as Voters May Think
Data centers can either increase or reduce electricity prices depending on grid capacity, infrastructure costs and how expenses are allocated. Experts say data center growth has contributed to significant price increases in the PJM market, while national and state-level evidence is mixed. Policymakers are considering measures to require data centers to cover more of the costs they impose on electric systems.
FactCheck.org examined competing political claims about whether data centers are driving up electricity prices. Energy Secretary Chris Wright has argued that data centers can lower prices by increasing demand and helping utilities spread fixed costs, while Democratic campaign ads in states including Ohio and Texas blame them for rising bills. Researchers generally find that the effects vary by region, with data centers contributing to higher costs in the PJM Interconnection but producing mixed or even negative effects on prices elsewhere.
Experts cited in the analysis said PJM capacity-market charges have added substantial costs for customers in Ohio and western Maryland, although data centers are not responsible for all national electricity-price increases. Federal lawmakers and state regulators are considering policies that would require large facilities to pay for power supplies, grid upgrades and related infrastructure, while proposals for pauses or moratoriums on new data centers remain part of the broader political debate. President Donald Trump's voluntary Ratepayer Protection Pledge has not created enforceable requirements for data center operators.