A group of Democratic senators, led by Bernie Sanders and Richard Blumenthal, has written to the White House and the U.S. Department of Commerce, drawing attention to the role of soaring artificial-intelligence-data-centre expansion in driving up electricity prices for ordinary consumers. They argue that the rapid build-out of large-scale data centres—by firms such as Meta Platforms, OpenAI, Alphabet Inc. and Oracle Corporation—is straining power grids and contributing to a year-over-year increase in retail electricity prices of around 5–6 %.
The senators emphasise that the problem isn’t simply data-centres per se, but rather the way their growth is being managed: many are locating in regions with constrained power supply, benefiting from generous tax incentives, and ramping up demand before local infrastructure can keep pace. According to the letter, consumers are ending up in “bidding wars … to keep the lights on at home” as large tech actors connect to local grids.
On the regulatory side, the letter criticises the current federal approach for being overly permissive—expedited permitting of data-centre projects, lesser emphasis on renewable energy or grid-load forecasting, and limited accountability for how much cost is externalised to local utilities and consumers. The senators call for federal safeguards, better oversight of power-intensive infrastructure, and transparent assessments of how AI-driven demand affects regional electricity markets.
Importantly, the debate draws attention to a broader dynamic: the growth of AI infrastructure is not just a matter of technological advancement but has real-world impacts on public utilities, households and climate policy. While the AI industry advances, some policymakers now argue that the costs and consequences—including rising energy bills, grid stress and environmental burdens—shouldn’t fall disproportionately on consumers or be left unaddressed at the federal level.
