Monday, December 22, 2025

“AI’s Power Hunger Is Jacking Up Your Electric Bill, U.S. Senators Warn Big Tech”

 AI’s Hidden Power Bill: U.S. Senators Say Big Tech Is Making Americans Pay for the Data Center Boom

The race to dominate artificial intelligence may be quietly inflating America’s electricity bills—and U.S. lawmakers say ordinary households are footing the bill for trillion-dollar tech giants.

In a rare bipartisan pushback against Big Tech’s AI expansion, Senators Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal have launched an investigation into whether companies like Google, Microsoft, Amazon, and Meta are shifting the enormous energy costs of their data centers onto local consumers.


Their message is blunt: AI isn’t just changing the internet—it’s changing what Americans pay to keep the lights on.

“Your electric bill is subsidizing Big Tech”

In letters sent to seven major data-center operators, including CoreWeave, Digital Realty, and Equinix, the senators warned that utilities are passing on the cost of massive grid upgrades to residential customers.

“When utilities expand power plants and transmission lines for data centers, those costs don’t disappear,” the lawmakers wrote. “They show up in monthly bills paid by American families.”

The result? According to the senators, households are effectively bankrolling the electricity needs of some of the richest companies in the world.

Why AI data centers are different

AI data centers are not ordinary server farms:

  • One facility can consume as much electricity as a mid-sized city.
  • The U.S. Department of Energy projects data centers could account for 12% of total U.S. electricity use by 2028.
  • AI workloads run 24/7, leaving utilities no choice but to build new power plants and transmission lines—fast.

In Indiana alone, one utility estimates it will need $17 billion in new power generation just to keep up with data center demand.

Bills rising, questions mounting

Since President Trump returned to office, average household electricity bills have risen 13% nationwide, a trend the senators say aligns closely with the acceleration of AI infrastructure buildouts.

The concern isn’t just cost—it’s fairness.

Lawmakers argue that while tech companies publicly pledge sustainability and “clean energy,” they often:

  • Avoid paying upfront for grid upgrades built specifically for them
  • Lock communities into higher long-term utility rates
  • Disclose little about real energy usage before construction begins

What lawmakers want to change

The senators are calling for a shift in who pays:

  • Data center operators should cover more of the infrastructure costs upfront
  • Communities should receive full transparency on energy impact
  • Residential customers should no longer act as silent sponsors of AI expansion

Why this fight matters

As AI models grow larger and more power-hungry, the conflict between innovation and affordability is moving from Silicon Valley to kitchen tables across America.

This investigation could redefine how AI infrastructure is financed—and whether the future of artificial intelligence is built on corporate investment or quietly charged to consumers’ monthly bills.

BY: Nirosha Gupta

No comments:

Post a Comment

Death by Algorithm: Preparing for the New Age of Legal Liability

The era of digital globalisation is hitting a hard border. For decades, the tech industry operated under the assumption that a single, mass...