The Problem
As data centers expand nationwide, utilities are receiving hundreds of gigawatts in interconnection requests. Dozens of utilities received data center requests for at least 700 gigawatts of power in 2025 alone — more than all the electricity the United States consumed in all of 2023 (Yañez-Barnuevo, 2026).
Key Facts
- Data centers could represent up to 12% of total U.S. electricity demand by 2028 — up to 580 terawatt-hours per year.
- Natural gas power plants are being built and existing coal plants are being kept alive to meet surging data center demand.
- Electricity bills are spiking for many households, contributing to an affordability crisis. This is happening more particularly for vulnerable communities.
- Overall, U.S. electricity demand is forecasted to reach about 1,250 gigawatts of energy by 2050 — a 78% increase from 2023 levels.
Why It Matters
When utilities add new infrastructure to serve data centers, those costs are often passed on to all customers in the region. Data centers have typically not paid their fair share in utilities — particularly for electricity — meaning other consumers, including residential customers, end up paying more than they otherwise would (Elan, 2026).
What Can Be Done
Co-locating renewable energy sources directly with data centers, instead of drawing from the wider grid, could minimize the need for costly network upgrades and reduce the burden on electricity customers (Yañez-Barnuevo, 2026). Stronger regulations requiring large data centers to fund their own grid infrastructure would also help protect everyday ratepayers.