By Atoyebi Nike
US power companies have filed for $29 billion in electricity rate increases this year, citing rising energy demand from AI data centers.
According to PowerLines, a consumer advocacy group, this marks a 142 percent jump from early 2024. The Financial Times reports that the surge is tied to the growing number of AI facilities across the country.
Charles Hua, director at PowerLines, said many states lack plans to manage AI-driven energy needs while keeping power affordable.
BloombergNEF forecasts that electricity use in the US could double within 10 years, mainly due to AI systems and infrastructure.
Consumer groups argue households should not bear the cost, while regulators are weighing higher charges for large industrial users.
Countries like Ireland have paused new data center approvals after fears of grid overload. The US faces similar challenges as it tries to lead in AI without straining its energy system.
