U.S. Neighborhoods Near Data Centers See 267% Power Bill Surge as $700 Billion AI Buildout Expands
Updated
Updated · The Globe and Mail · May 25
U.S. Neighborhoods Near Data Centers See 267% Power Bill Surge as $700 Billion AI Buildout Expands
2 articles · Updated · The Globe and Mail · May 25
Electricity bills in U.S. neighborhoods near new data centers have jumped 267% on average since 2020, a rise tied to the heavy power demand of AI infrastructure.
Morgan Stanley says that pressure could quickly become a political issue before the fall midterm elections, pushing candidates to promise more electricity supply and fewer permitting delays for new generation.
Nuclear power stands to be a major beneficiary because hyperscalers have locked in long-term power contracts that help finance new projects; the bank also sees room for renewables and faster-to-build natural gas plants.
Moody’s estimates data-center spending will hit $700 billion in 2026—more than five times 2022 levels—supporting companies tied to the buildout even as broader AI-market skepticism persists.
The report also flags late-2026 IPO plans for Anthropic at about $300 billion and OpenAI near a $1 trillion valuation, warning that any weak demand could ripple across the wider market.
Will trillion-dollar AI IPOs starve the rest of the market or become the next sustainable engine for economic growth?
With a $1 trillion power deficit for AI, can the U.S. grid be rebuilt in time to prevent widespread economic disruption?
As AI power demand strains the US, can Canada reverse its 'brain drain' and become a competitive tech alternative?
AI Data Centers Drive Record U.S. Electricity Bill Hikes: Causes, Community Impacts, and the Search for Sustainable Solutions
Overview
Electricity costs in the United States are rising sharply, driven by the rapid expansion of AI data centers. Utilities have responded by requesting record rate hikes, with $9.4 billion sought in early 2026 alone, following even larger requests in previous years. Many of these increases are still pending approval, meaning consumers could face even higher bills soon. Experts predict that electricity prices will continue to outpace inflation through 2026. The growing demand from AI data centers is putting pressure on the power grid and infrastructure, leading utilities to pass on higher costs to customers across the country.