As more Americans feel the sting of rising electric bills, many wonder what’s really driving this surge beyond the usual suspects like inflation and weather.
New research from InvestorsObserver uncovers a rarely discussed but growing driver: the explosive demand from data centers powering AI, streaming, gaming, and cloud computing.
Using detailed state-level electricity price data from 1990 to August 2025, paired with precise data center counts, they reveal how the digital infrastructure boom affects your power bill, and why the story isn’t as straightforward as "more servers mean higher bills."
The findings challenge the simplistic narrative that data centers automatically drive up local electricity costs.
Key findings:
Electricity prices nationwide surged 34% from 2020 to August 2025, the fastest five-year increase in recent history.
Despite hosting the most data centers, Virginia saw only a 31% price increase, while California experienced a 64% jump.
Maine recorded the most dramatic price surge at 94.6% (2020-2025).
Counter-intuitively, states with more data centers have lower average electricity prices than less digitized states.
The relationship between data centers and electricity costs isn't straightforward as North Carolina, Georgia and Iowa maintain moderate prices despite large data center presence.
2022-2023 saw the steepest inflation (6% average increase), coinciding with post-pandemic economic recovery.
Read the full report.
ABOUT SAM BOURGI
Sam Bourgi is a finance analyst and researcher at InvestorsObserver, bringing over 13 years of expertise in financial markets, economics, and monetary policy. His professional background spans the private, nonprofit, and public sectors, where he has held positions such as senior policy adviser, labor market analyst, and marketing director. Sam’s in-depth research and market analysis have been referenced by leading institutions and organizations, including the U.S. Congress, Department of Justice, Chicago Board Options Exchange, Bank for International Settlements, Boston University Law Review, Barron’s, and Forbes. Sam regularly appears on TV, including CBN, KFYR TV, and ABC30, and is often quoted by such media outlets as the SF Chronicle and MSN.
ABOUT INVESTORS OBSERVER
Investors Observer is a trusted source of independent financial analysis, market insights, and investment research for individuals and institutions. Founded to empower retail investors with actionable intelligence, InvestorsObserver delivers timely commentary, data-driven studies, and accessible financial tools designed to simplify complex market trends. Its research and insights have been featured by various media outlets, including Yahoo, The Guardian, Morning Star, Nasdaq, and more.
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