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   Global AI usage surge could cause US electricity prices to increase by 18%   
   within years - and that's just the beginning   
      
   Date:   
   Wed, 20 Aug 2025 19:19:00 +0000   
      
   Description:   
   Americas energy debate is shifting as AI data centers consume vast power,   
   driving bills higher and forcing households to absorb the hidden costs of   
   expansion.   
      
   FULL STORY   
      
   The accelerating demand for computing power has pushed artificial    
   intelligence into the center of the US energy debate.    
      
   Data centers used to support cloud services, streaming platforms, and online   
   storage already consume large amounts of electricity, but the rise of AI    
   tools has magnified those needs.    
      
   According to federal projections, the share of national electricity use from   
   data centers could rise from 4% in 2023 to 12% by 2028.   
      
   AIs energy appetite intensifies demand   
      
   Since running an AI writer or hosting an LLM is more energy-intensive than   
   typical web activity, the growth curve is steep.    
      
   This expansion is not only changing the relationship between technology firms   
   and utilities, but it is also reshaping how electricity costs are distributed   
   across society.    
      
   Electricity prices in the US have already climbed more than 30% since 2020,   
   and a Carnegie MellonNorth Carolina State study warns of another 8%    
   nationwide rise by 2030.    
      
   In states such as Virginia, the increase could reach 25%. Utilities argue    
   that grid upgrades are essential, but the concern is who will pay for them.    
      
   This is only the beginning, because when a French person asks ChatGPT when    
   the next strike is planned, Americans pay more for electricity.    
      
   How? When anyone anywhere in the world asks ChatGPT an everyday question, the   
   extra energy consumed by that query is absorbed into U.S. grid demand.    
      
   This is because the ChatGPT system runs on US-based servers, hosted in   
   American data centers and powered by the US electricity grid.    
      
   If technology firms secure large capacity allocations and delay projects,   
   households and small businesses may be left paying for unused infrastructure.    
      
   The case of Unicorn Interests in Virginia, where a delayed facility left   
   nearby customers covering millions in upgrade expenses, underscores this risk.   
      
   To counter such problems, American Electric Power in Ohio proposed a rate    
   plan requiring data centers to pay for 85% of the requested capacity   
   regardless of actual use.    
      
   The states regulators approved the measure despite opposition from cloud   
   service providers, who offered a 75% minimum instead.    
      
   Some companies have sought to bypass traditional utilities by generating    
   their own power.    
      
   Amazon, Microsoft, Google, and Meta already operate renewable installations,   
   gas turbines, and diesel backup generators, and some are planning nuclear   
   facilities.    
      
   These companies not only produce electricity for their own operations but    
   also sell surplus energy into wholesale markets, creating competition with   
   traditional suppliers.    
      
   In recent years, such sales have generated billions, giving major cloud   
   providers influence over both supply and price in certain regions.    
      
   The volatile consumption patterns of AI training, which can swing sharply   
   between peaks and lows, pose another challenge.    
      
   Even a 10% shift in demand can destabilize networks, forcing utilities to   
   intervene with dummy workloads.    
      
   With households already paying more each month in some states, the concern is   
   that consumers will end up covering the cost of keeping LLM hosting and AI   
   writer systems online.    
      
   Via Toms Hardware   
      
   ======================================================================   
   Link to news story:   
   https://www.techradar.com/pro/global-ai-usage-surge-could-cause-us-electricity   
   -prices-to-increase-by-18-within-years-and-thats-just-the-beginning   
      
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