A study from North Carolina State University published in May 2026 projects that data center electricity demand growth across the Southeast US could raise average residential electricity bills by 57% by 2035 if utility infrastructure investment does not keep pace with commercial load additions. The research analyzed utility rate cases, grid capacity models, and planned data center expansions across North Carolina, Georgia, South Carolina, Virginia, and Tennessee.
The study's primary finding centers on the cost allocation structure of electric utility rate design. When large industrial and commercial customers, including data centers, require significant transmission and generation infrastructure investment to serve their load, a portion of those fixed capital costs is distributed across all customer classes including residential accounts. The researchers found that current rate structures in several Southeast states would result in above-average cost pass-through to residential customers if data center growth continues at projected rates without corresponding rate design adjustments.
The 57% figure represents a worst-case scenario in which no regulatory reforms are implemented and data center load growth tracks the upper bound of the study's demand forecast model. More moderate growth scenarios project residential bill increases of 18% to 31% by 2035.
Lead researcher Dr. Avery Simmons noted that several state utility commissions are actively examining rate design changes that would shift more infrastructure cost recovery directly to large commercial customers, including data centers, rather than distributing costs across the full ratepayer base.
Source: NC State University News -- https://news.ncsu.edu/2026/05/data-center-electricity-bills-57-percent-study