US Electricity Demand Rises as Data Centers Expand and Costs Climb

Electricity use in the United States has increased in recent years, driven in part by the rapid expansion of data centers and the adoption of new technologies. This trend has contributed to higher costs for consumers and prompted utilities to plan for major infrastructure investments.

In December 2025, US households were paying 42% more for electricity compared to ten years earlier. Data centers have become a major factor in this shift, with their electricity consumption growing steadily over the past decade. In 2024, these facilities accounted for more than 4% of the nation’s total electricity usage, according to the International Energy Agency.

Projections indicate that data center electricity consumption in the US could increase by 133% by the end of the decade. This level of demand would be similar to the electricity usage of an entire country such as France. The growth in data center development has also affected consumer costs, especially in regions with high concentrations of these facilities.

Between June 2024 and May 2025, the PJM region, which covers parts of the eastern United States, saw consumer electricity costs rise by over $9.3 billion due to new data center developments. Data centers also generated more than 105 million tonnes of carbon dioxide equivalent in 2023, with more than half of this coming from fossil fuel sources.

What the numbers show

• US household electricity costs increased by 42% from 2015 to 2025
• Data centers used more than 4% of US electricity in 2024
• Data center electricity use is projected to grow by 133% by 2030
• Commonwealth Edison received over 30 gigawatts of data center connection requests for 2045
• AI-powered data centers may use up to 11% of US electricity by 2030

Utilities are responding to these changes by planning large-scale upgrades to the power grid. Commonwealth Edison, a major utility company, has requested approval for a $15.3 billion, four-year plan to modernize its grid and accommodate rising demand from data centers. The company has also received data center connection requests totaling over 30 gigawatts, which are expected to be operational by 2045.

Industry leaders have commented on the factors influencing electricity prices. Exelon CEO Calvin Butler stated that rising demand, combined with limited supply, is contributing to higher electricity costs. These statements reflect the challenges utilities face in balancing growth with supply constraints.

In response to the growing energy needs, some companies are exploring new technologies. Commonwealth Fusion Systems said that artificial intelligence is helping accelerate the development of fusion energy as a potential power source. In New Mexico, Zanskar, a geothermal energy company, uses AI-powered mapping to improve the targeting of geothermal wells, aiming to enhance the efficiency of renewable energy production.

Industry reaction

Exelon CEO Calvin Butler stated that the combination of increased demand and insufficient supply is driving up electricity costs. Commonwealth Fusion Systems said that artificial intelligence is playing a role in advancing fusion energy development as a new option for meeting future power needs.

As the demand for electricity continues to rise, utilities, technology firms, and energy companies are taking steps to address both supply challenges and the environmental impact of increased consumption. The ongoing expansion of data centers and the adoption of artificial intelligence in energy production are shaping the future of the US electricity landscape.

* This article is based on publicly available information at the time of writing.