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What AI data centers are doing to your electric bill

Planet Money

2025/12/20
Planet Money

Planet Money

2025/12/20
In rural Ohio, a quiet shift is reshaping the energy landscape—one that’s hitting household budgets harder than ever. What started as a personal question about a rising electric bill opens a window into a much larger story about technology, infrastructure, and who pays for progress.
Ken and Carol Apaki's nearly doubled electricity bill reflects broader changes driven by the AI-fueled data center boom. These massive facilities are transforming farmland into power hubs, straining Ohio’s grid and inflating costs for residential customers. AEP Ohio paused new connections to manage risk, requiring developers to pay for unused capacity, but households still absorb much of the financial burden. The state’s deregulated energy market, once meant to lower prices, now struggles with surging demand. PJM, the regional grid operator, has seen generation costs jump tenfold due to data centers, yet $12 billion in capacity payments have gone to existing plants instead of spurring new construction. Delays, supply shortages, and outdated market mechanisms leave consumers footing the bill. With more data centers on the way and reforms pending, rising electricity costs appear inevitable—for now.
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Data centers may fail or under-perform, causing residential customers to bear the cost
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The arrival of numerous data centers has increased electricity demand, causing the capacity market to struggle as supply may not meet the new demand.
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PJM's generation prices increased tenfold due to data center demand