"A recent nationwide survey of more than 1,400 U.S. households found that two-thirds of Americans believe AI is already driving up their power bills, and most said they can't afford more than a $20 monthly increase. They're right to be worried. As tech companies pour hundreds of billions into new data centers, the surge in electricity demand is rewriting the economics of the grid - and households are footing the bill for an "AI power tax" they never voted for."
"As Chris Wright, the Secretary of the Department of Energy, recently said, "we don't need more electrons ... We only need more electrons a few hours a year at peak demand. We have slack capacity 98% of the time." Outdated pricing rules hide the real cost of peak demand, shift the burden onto ordinary people, and drive bills higher even when supply is abundant."
Households are increasingly bearing the cost of electricity used by rapidly expanding AI infrastructure, with many Americans reporting bill increases and limited willingness to pay more. Tech spending on AI infrastructure is expected to reach $300–400 billion in 2025, fueling the steepest electricity demand growth since World War II. Five-year load forecasts jumped from 23 GW in 2022 to 128 GW in 2025, and data center usage could rise from 4.4% of U.S. electricity in 2023 to 12% by 2030. Residential electric prices have climbed nearly 40% since January 2021. Outdated pricing rules obscure peak costs and shift reliability expenses onto ordinary consumers despite ample slack capacity most of the time.
Read at Fast Company
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