Last Update: 04/05/2026 at 1:25 PM EST

Data Centers Raise Power Cost Fears

Coverage from WRAL, Grist, and others

Articles

22

Latest Article

04/06

Active Days

80

Executive Summary

Data center growth is driving higher power demand and bills, prompting calls to make big users pay more while clean energy groups warn of impacts

  • Mid-Atlantic governors and Trump officials urged PJM to extend a wholesale price cap and fast-track new capacity for data centers
  • PJM said it would start backstop generation procurement and review market incentives before deciding on the price cap
  • Clean energy advocates say the proposal could favor gas plants over wind and solar projects waiting in PJM's queue
  • Virginia and other states face backlash over data center expansion tied to higher electricity costs, water use, and grid strain
  • Industry groups have launched major ad campaigns to portray data centers as job creators and clean energy supporters
  • Virginia regulators approved a new rate structure for AI data centers and other large users to shield households from costs
  • In Utah, Novva sought federal Clean Air Act exemptions as grid limits pushed it toward gas and diesel backup generation

Quick Facts

  • What: They are debating who should pay for data center power
  • Where: Mid Atlantic states and related data center markets
  • Why: Rapid data center growth is straining grids and raising bills
  • Who: Governors, Trump officials, PJM and clean energy advocates
  • When: In 2025 amid rising electricity costs

Coverage Timeline: 80 Days

1Jan 17 '261Jan 261Jan 291Feb 41Feb 241Feb 252Mar 11Mar 191Mar 202Mar 231Mar 241Mar 291Mar 313Apr 11Apr 22Apr 31Apr 6 '26

Featured Article

Climatecommunityinstitute 03-19-2026
AI data center expansion is prompting proposals for demand-response requirements and grid planning reforms, with national moratorium and FERC authority options discussed in Alabama and California contexts.

Additional Articles

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WRAL / Liz McLaughlin 02-04-2026
In North Carolina, Duke Energy, state regulators, and residents are debating how rapidly expanding AI data centers will affect electricity infrastructure, emissions, water resources, and customer costs.

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Grist / Naveena Sadasivam 02-24-2026
Novva seeks energy flexibility in Utah amid grid constraints.
Grist / Sophie Hurwitz 01-26-2026
In 2025 in Virginia and other U.S. states, data center developers and industry groups intensified multimillion-dollar PR campaigns amid growing community and regulatory pushback over grid and cost impacts.
AI Data Centers: The New Climate Threat / Herb Simmens 03-01-2026
Climate experts discuss AI driven data center energy and water use, policy options, and energy planning in the 2020s in North America and globally.
Inside Climate News / Derek Harrison 01-17-2026
Mid-Atlantic governors and Trump administration officials on Friday announced at the White House a nonbinding proposal urging PJM Interconnection to extend price caps and fast-track data-center-related power capacity.
Heatmap News 04-03-2026
Heatmap Pro and the Electricity Price Hub connect higher electricity generation and distribution costs from 2020 to 2026 with local opposition to data centers and some renewables across U.S. counties.
The Guardian 01-29-2026
Global Energy Monitor reports that US-led development of new gas-fired plants for AI datacenters in 2026 will raise lifetime CO2 emissions and concentrate build-out in Texas, Pennsylvania and Louisiana.

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The Akron Legal News 04-06-2026
Technology companies building AI data centers face electricity constraints as reported emissions rise, with natural gas supply and policy uncertainty complicating 2030 climate goals in the U.S. during 2024-2025.
Heatmap News 04-03-2026
US state legislatures in Virginia, Pennsylvania, Texas, Georgia, and Indiana consider new rules for data center electricity demand and water use amid growing political opposition.
Heatmap News / Jael Holzman 03-20-2026
U.S. activists and some state lawmakers link data center concerns to opposition for nearby solar and other renewables across multiple states.
Los Angeles Times / Katie King 03-23-2026
Imperial County residents oppose a proposed AI data center as California lawmakers debate ending CEQA exemptions for large facilities amid water, power, and air quality concerns.
Fortune / Tammy Webber 03-29-2026
Analysts report that AI-driven electricity demand is making it difficult for major tech firms to meet 2030 greenhouse-gas goals, increasing reliance on natural gas for data centers.
Renewable And Sustainable Energy Institute 04-02-2026
Colorado Climate Week panel with CU Boulder researchers Kyri Baker and Bri-Mathias Hodge in Colorado discussed AI data center load, renewable integration, and grid flexibility.
Axios / Amy Harder 04-01-2026
Rystad Energy says AI-driven data-center investment in 2025 concentrates in the U.S., raising global power demand and emissions risk amid expected supply-chain constraints and price spikes.
Axios / Amy Harder 04-01-2026
Rystad Energy finds U.S.-led AI data center investment reaching about 771 billion dollars in 2025, nearly matching oil and gas while renewables rise to about 798 billion.
Axios / Amy Harder 04-01-2026
Rystad Energy reports that AI-driven data center investment surged in 2025, with the United States holding 42% of installed capacity and supply chain delays posing risks.
TribLIVE.com 03-31-2026
Pennsylvania residents and advocates seek stronger siting and solar-ready requirements for expanding data centers across six counties to reduce health, pollution, and climate risks.
Center for Progressive Reform / Brian Gumm 03-23-2026
In the United States and PJM, policy proposals target AI data center electricity growth by improving siting transparency and requiring demand response to reduce new generation needs.
Evergreen Action 03-24-2026
New York and other U.S. states propose utility-rate and clean-capacity rules for data centers to curb household power-cost increases.

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Los Angeles Times / Jessica Koscielniak-Pool 02-25-2026
United States residents face rising electricity costs in 2025 due to federal policy shifts reshaping energy supply and grid governance.
Fortune / Jordan Blum 03-01-2026
Utilities and hyperscalers face rising energy bills in 2025 due to aging grid and gas cost spikes in the PJM region.