The growing demand for energy at US data centers has resulted in rising electricity prices in the country, as more artificial intelligence (AI) technologies consume the country's energy and water resources.
Energy distributors are being prompted to make more investments to meet the needs of data centers in the US.
The retail price of one kilowatt-hour of electricity in the US rose 6.5% from May 2024 to May 2025, from 16.41 cents to 17.47 cents nationwide, according to the Energy Information Administration (EIA).
Some states saw higher increases, including Maine, which saw a whopping 36.3% increase in electricity prices, followed by Connecticut (18.4%) and Utah (15.2%).
According to analysts from website Axios, high electricity consumption, particularly in areas with a high number of data centers, drives up prices because electricity companies pass on the costs of installing new transmission lines and other data center equipment to end users.
Data centers in Northern Virginia, where the majority of the US' data centers are located, can currently self-sustain their own needs, but energy demand may result in monthly bill increases of $14 to $37 (unadjusted for inflation) for residents by 2040, according to the Joint Legislative Audit and Review Commission (JLARC).
Goldman Sachs reported that energy consumption in data centers has remained stable for many years, but the rapid rise of generative AI tools is expected to result in a 160% surge in energy demand from these data centers by 2030.
In the face of energy constraints, tech giants like Google, Amazon, and Microsoft are turning to nuclear energy as an alternative to powering their AI solutions.
Google has announced that it will use small nuclear reactors to power its AI data centers, partnering with Kairos Power, while Microsoft and Amazon have decided to increase their nuclear investments.
US President Donald Trump announced at a summit in Pennsylvania that more than $92 billion will be invested in the country's AI and energy infrastructure.
According to Google's 2024 Environmental Report, the firm's data centers consumed approximately 6 billion gallons (22.7 billion liters) of water last year, driven by rising competition from China.
Reporting by Abdulkadir Gunyol
Writing by Emir Yildirim
Anadolu Agency
energy@aa.com.tr