If you live in one of these 13 states, you might have a higher electric bill next year. Blame data centers.

Residents in 13 states may soon find their electricity bills rising, and the culprit appears to be the increasing demand driven by data centers. Recent reports indicate that customers of the largest regional power grid operator in the United States are facing potential rate hikes due to an unprecedented surge in electricity needs from AI data centers. PJM Interconnection, which oversees a vast network serving approximately 67 million customers, announced that its annual capacity auction resulted in wholesale electric capacity prices rising by 22% compared to the previous year, marking yet another record. According to PJM, monthly utility bills in its service area could see increases of up to 5% next year. This region spans thirteen states stretching from the Midwest to the East Coast, including parts of Delaware, Indiana, Illinois, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Washington, D.C. The PJM auction, held every summer, sets the wholesale electricity prices for the following year and is regarded as an indicator for electricity pricing across the nation, even though it does not encompass the entire U.S. A significant area within PJM's jurisdiction is Northern Virginia, famously known as Data Center Alley, which hosts the highest concentration of data centers globally. Additionally, cities like Columbus, Ohio, are witnessing rapid growth in data center developments. PJM has highlighted this expansion as the main factor behind the increasing demand for electricity, which has subsequently driven wholesale prices higher. The Bank of America Institute forecasts that electricity demand in the U.S. will rise by 2.5% annually through 2035, largely fueled by data centers. As utility bills climb at a rate outpacing inflation, concerns are being raised about the impact on residential customers. In Maryland, advocates like People’s Counsel David Lapp are calling for regulatory action to protect both residential users and small businesses. Lapp expressed concern over what he describes as a significant shift of wealth from everyday utility customers to large corporations operating data centers and utilities. He stated, "Utility regulation is failing to protect residential customers, contributing to an energy affordability crisis." As these trends unfold, households may need to brace for the financial impact of this growing demand for electricity.