Senators Question Whether Data Centers Are Causing Your Sky-High Electricity Bills

Last updated: 2025/12/16 at 7:47 PM

News Room Published 16 December 2025

Three Democratic senators are investigating whether AI data centers from the likes of Amazon, Google, and Microsoft are causing electricity prices to increase for neighboring residents.

Sens. Elizabeth Warren of Massachusetts, Chris Van Hollen of Maryland, and Richard Blumenthal of Connecticut sent letters to seven tech companies today inquiring about “alarming reports that tech companies are passing on the costs of building and operating their data centers to ordinary Americans.”

The senators cite research from Harvard Law School that found utility companies are incentivized to pass on rate hikes to locals so that they can dangle discounted electricity rates for AI data center projects. “Through these utility price increases, American families bankroll the electricity costs of trillion dollar tech companies,” the senators wrote.

The lawmakers also cite a report from Bloomberg, which found that electricity costs have increased 267% from five years ago for US areas located near significant data center activity.

“The contracts between data centers and utility companies that underlie these arrangements are almost always confidential, leaving the public in the dark on why their electric bill keeps going up,” they said.

The senators are demanding that seven tech companies (Amazon, Google, Meta, Microsoft, CoreWeave, Digital Realty, and Equinix) provide details by Jan. 12 about electricity arrangements with local utility providers, current and projected energy usage for data centers, the average rate paid for the electricity, and whether the data centers are primarily used for AI processing.

“What actions has your company taken to prevent your electricity costs from being passed on to consumer electricity bills?” they ask. “How does your company plan to offset the impact of your data centers’ future energy usage on residential utility costs?

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The scrutiny arrives when 70% of US households have seen their electricity costs rise over the past year, with many blaming it on the energy-demands from AI, according to a recent survey. In some cases, local residents have been protesting incoming AI data centers over the environmental impact, potential pollution, and land seizure attempts.

But other research says it’s possible that other factors, such as replacing existing infrastructures, or repairs from natural disasters, have also led to electricity price increases.