Will a data center raise my power bill?
The short answer: Probably not. A 2026 study found that from 2015 to 2024, data center growth slightly lowered average home electric rates. That is a look back, not a promise, and it depends on your utility and your state.[10]
Data centers used 4.4% of U.S. electricity in 2023. For most of the 2010s, their energy use stayed nearly flat even as computing exploded, because efficiency kept pace with growth.[1]
As for your bill: a 2026 study by energy economists at the Electric Power Research Institute and Watershed tested the claim directly and found the opposite. From 2015 to 2024, data center growth modestly lowered average residential electricity rates, because durable new demand spreads the grid’s enormous fixed costs across more kilowatt-hours. The average customer paid about 6% less from 2019 to 2024 than they would have without the buildout.[10]
New facilities don’t appear overnight. Utilities plan for them years ahead through formal resource plans: Georgia regulators approved Georgia Power’s expansion with explicit protections for existing ratepayers if data center demand shifts,[11] and Dominion completed 123 transmission projects and 13 new substations in Virginia in the first half of 2024 alone. Those upgrades strengthen the grid for everyone on it.[12]
Data centers are paying for new American power plants: Microsoft’s 20-year agreement is restarting Three Mile Island Unit 1 (835 MW of carbon-free nuclear),[13] Amazon contracted up to 1,920 MW of nuclear power from Pennsylvania’s Susquehanna plant through 2042,[14] and Meta’s partnership with Silicon Ranch has built roughly 1.5 GW of new solar across Georgia and Tennessee.[15]
Backup diesel generators sit idle almost all year. EPA rules cap maintenance and readiness testing at 100 hours per year, require ultra-low-sulfur fuel, and hold the engines to federal emission standards. They run for real only when the grid itself fails.[16]