Electricity costs tied to rapid data center expansion could rise sharply across the United States by the end of the decade, according to new research published in the journal Environmental Research Letters. The study found that data centers' share of total US electricity consumption nearly doubled from 1.9% in 2018 to 4.4% in 2023. Under various demand scenarios, the national average wholesale electricity cost could climb between 6% and 29% by 2030. In states with the highest concentrations of data center activity, the impact would be more severe. In Virginia, a hub for hyperscale data center development, electricity generation costs could rise by as much as 57%, the study found.
Grid power consumed by data centers rose 22% last year, according to S&P Global data. The sector could account for up to 17% of all US electricity consumption by the close of the decade. To meet that demand, utilities are expected to lean heavily on natural gas, and the research projects that data center growth could push carbon dioxide emissions from electricity generation up as much as 28% by 2030 absent restored clean energy incentives.
A Gallup poll released alongside the study found that seven in 10 Americans opposed having a data center built near their community. Electricity cost concerns ranked among the most common reasons cited. Opposition has translated into direct economic impact: more than $156 billion in planned data center construction was stalled or halted by local communities during 2025, according to the research firm Data Center Watch.
Jeremiah Johnson, lead author and associate professor of civil and environmental engineering at North Carolina State University, described the scale of data center demand as requiring an all-hands-on-deck response from the power sector.
Source: Fortune -- https://fortune.com/2026/05/19/data-centers-electricity-costs-us-public-opinion/