Data Centers Are Concentrated in These States. Here's What's Happening to Electricity Prices

Residential electricity prices rose 6% nationally in August year-over-year, but states with high data center concentrations saw far steeper increases: Virginia up 13%, Illinois 16%, Ohio 12%, and New Jersey 20%. An independent watchdog found data centers drove 63% of the PJM grid's $14.7 billion capacity bill for 2025-2026, a 500% increase from the prior year's $2.2 billion. The supply-demand imbalance on the PJM grid, which serves 65 million people across 13 states, is the primary mechanism transmitting data center costs to household utility bills. The issue is becoming a significant political liability, with Democrats winning governor's races in Virginia and New Jersey by campaigning on electricity affordability and targeting AI industry data center expansion. Experts see no realistic path to lower utility bills this decade given the pace of demand growth and the years-long lag in bringing new supply online.