Americans believe utility companies and data centers are burrowing their pockets for energy bills

Americans are starting to look at their electricity bills in the same confused way they look at airline baggage fees which are somehow always higher than anticipated.

Electricity was like an uninvited surprise for 89% of Americans as per prepaid electricity, while for 13% it’s becoming habitual since this shock pays them a visit nearly every month. In response, 67% are dialing down their use of heater or air conditioning, and 54% have upped the ante by unplugging appliances and electronics. Americans are essentially playing defense against their thermostats.

In fact, most households are thinking along the same line that something else is driving up the meter. A nationwide survey found that two-thirds of Americans are of the opinion that AI is responsible for increasing their electricity bills. Pew data showed 64% blamed utility companies’ profit motives, while 43% pointed to energy-hungry data centers as a major reason behind rising electricity costs. Meanwhile, utilities requested a record $31 billion in rate hikes last year, affecting 81 million Americans.

In PJM the grid covering 13 states and Washington, D.C. capacity prices have increased 11x in just a span two years, with analysts holding data centers responsible for two-thirds of the increase. That amounts to $9.3 billion in extra utility bills and means a $10- $21 AI power tax per month for households.  

At this rate, if this continues by 2027 Americans are at risk of facing $15–30 billion annually in AI subsidies. In addition, residential electricity prices on a national scale have climbed nearly 40% since January 2021.

While American households are watching their electricity bills increase by the day, it’s all a big win for utility executives who are cashing in large checks. America’s largest utility CEOs collected a combined $626 million as per the Energy and Policy Institute, what’s more? Even CEO pay across investor-owned utilities rose 16% year over year. And it doesn’t stop there, utility profits also took a leap from $39 billion in 2021 to more than $52 billion in 2024.