AI Energy Surge Raises U.S. Power Price

(MENAFN) The growing reliance on artificial intelligence (AI) technologies is significantly influencing electricity prices in the United States, according to a report by a publication, referencing data from PJM—the country’s most extensive electrical grid operator—notes that this increase conflicts with former President Donald Trump's promise to ensure more affordable energy for American citizens.

The rise in power consumption is largely attributed to the increasing number of AI-dependent data facilities, particularly concentrated in Virginia’s so-called “data center alley.”

Since the emergence of “ChatGPT” as a widely recognized tool, the demand for computing power has skyrocketed, placing immense strain on existing electrical infrastructure.

Industry analysts point to this AI-fueled surge, combined with delays in constructing new energy systems and the retirement of aging power stations, as key drivers behind the mounting energy expenditures.

PJM, which supplies electricity to 65 million individuals across 13 U.S. states and Washington, D.C., announced on Tuesday that it plans to allocate $16.1 billion to energy suppliers for the period from mid-2026 to mid-2027.

This amount reflects a 10% rise compared to the previous year.

As a result, household consumers could experience an increase in electricity costs of up to 5%.

These developments pose a significant challenge to Trump’s recurring commitment to cut residential power expenses by 50%.

Figures from the U.S. Labor Department reveal that electricity costs have surged 5.6% over the past year, while the broader inflation rate stands at 2.7%.

“It’s unpleasant for ratepayers,” stated Timothy Fox of ClearView Energy Partners in an interview with the publication, emphasizing that “higher auction prices will result in higher bills for customers.”

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