Why AI is causing summer electricity bills to soar

If your electricity bill seems shockingly high, you’re not imagining it. A big part of the spike is being driven by rising artificial intelligence electricity demand.

PJM Interconnection, the largest power grid operator in the United States, says electricity usage is climbing sharply this summer. Some areas may see bills increase by as much as 20%. One of the main drivers behind this trend is the growing power consumption from data centers that support AI systems like ChatGPT and other generative tools.

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TRUMP ADMIN TACKLES URGENT ELECTRICAL GRID CRISIS AS AI SET TO DOUBLE DEMAND

Electric transmission lines under strain from growing electricity demand  (Kurt "CyberGuy" Knutsson)

Why the power grid is struggling to keep up

PJM supplies electricity to 67 million customers across 13 states: Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia, as well as the District of Columbia. It manages a vast and complex network of power distribution. This summer, the grid is showing signs of strain.

In just the past year, data centers running AI have started using much more electricity. These centers can consume up to 30 times more power than traditional data centers. Most of them are connected to the same grid that serves homes and businesses, which means the cost of that power growth is shared by everyone.

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AI and data centers are fueling a surge in energy use

AI took off in 2023 when tools like ChatGPT became widely adopted. Since then, companies have been racing to build more infrastructure to keep up. PJM’s territory now has the largest number of data centers in the world.

Between 2024 and 2025, electricity demand from AI and data centers in the PJM region contributed to a $9 billion increase in power costs. PJM expects peak usage this summer to reach over 154,000 megawatts, with the potential to exceed all-time records during heat waves or emergencies.

AI data center needing high energy demands  (Kurt "CyberGuy" Knutsson)

Why electricity prices are rising across the U.S.

While demand is rising quickly, the power supply is not keeping up with the pace. Many fossil fuel plants are shutting down due to state regulations, aging infrastructure or market conditions. More than 9,000 megawatts of coal capacity will retire or convert to gas in 2025 alone.

WHAT IS ARTIFICIAL INTELLIGENCE (AI)?

Clean energy options like wind and solar are often the cheapest ways to add new power, but developers are struggling with permitting delays, rising costs and a loss of federal incentives. For example, the 30% federal solar tax credit for homeowners will end after 2025. That change is already slowing down new installations.

Large solar farm generating renewable energy   (Kurt "CyberGuy" Knutsson)

How AI is increasing your electric bill

Even if you never use AI tools yourself, you are still likely paying for their growth. The cost of expanding the data center’s power supply is spread across all grid users, including regular households.

PJM customers have been warned to expect electric bills to increase by $25 or more per month. Commercial users may see prices climb nearly 30%.

To help prevent rolling blackouts, PJM is rolling out demand response programs that pay large businesses to temporarily reduce their electricity use during periods of extreme demand. Still, if electricity usage exceeds 166,000 megawatts, some regions may not have enough reserve power to maintain reliability. 

Tips to reduce your electricity bill

Looking for ways to lower your electricity bill as prices surge? Here are some effective tips you can start using today:

• Unplug electronics and appliances when not in use to avoid phantom power drain.
• Upgrade to smart thermostats and LED lighting for greater energy efficiency.
• Run major appliances (like washers and dishwashers) during off-peak hours.
• Consider adding weather stripping or insulation to block drafts and improve cooling/heating.
• Monitor your energy usage with smart plugs or an electricity usage monitor for real-time feedback.

For more tips and expert advice, check out the 7 best ways to save money on your electricity bill 

Kurt’s key takeaway

AI electricity demand is growing faster than the grid can handle. As more data centers come online to power tools like ChatGPT, the strain is showing up on your utility bill. Without major upgrades to infrastructure or smarter energy policy, prices could keep climbing. The tech may be smart, but the cost of keeping it running is getting harder for everyone else to ignore.

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