AI isn’t only taking jobs: The new technology is causing electricity bills to skyrocket this summer

Much has been said about the pros and cons of artificial intelligence. While AI is designed to enhance efficiency, eliminate human error and improve decision-making, many are concerned, rightly or wrongly, about losing their job because of it. That appears to be the most common fear, although another less-discussed downside to the technology has now been pointed out.

AI causing huge surge in electricity demand

According to PJM Interconnection, the largest power grid operator in the United States, electricity usage is soaring to the extent that bills in parts of the country in which it operates may increase by as much as 20% this summer. And a lot of that has to do with AI.

More and more people are jumping on the artificial intelligence bandwagon, particularly in the form of using powerful AI chatbots such as ChatGPT, Gemini, Claude and Microsoft Copilot. And as these AI systems develop at a rapid pace, the electricity user by data centers that support them is skyrocketing.

Per a report by Fox Business, such data centers can consume up to 30 times more electricity than traditional ones. But because they are connected to the same grid as homes and businesses, that inevitably means more expensive bills for those home and business owners, with all grid users sharing the cost.

Electricity costs expected to keep rising

In the 13 states to which PJM Interconnection supplies power, the electricity demand from AI and data centers contributed to a $9 billion increase in power costs. The demand is expected to continue rising in the summer, and could well exceed all-time records.

With many fossil fuel plants across the United States closing down, and clean energy options such as wind and solar power being affected by permitting delays, higher costs and federal cuts, the dwindling power supply means electricity prices are set to keep climbing.

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