Americans are facing higher electricity bills this summer, with several states experiencing double-digit price hikes. Extreme weather and the rapid growth of energy-intensive data centers are reshaping the nation’s power grid and household budgets.
Electricity costs have surged nationwide, rising an average of 6.5% between May 2024 and May 2025, according to the U.S. Energy Information Administration (EIA). While some states have seen moderate increases, others—like Maine, Connecticut, and Utah—are facing significant jumps that are forcing consumers to adjust to an increasingly expensive energy market.
States Hit Hardest by Rising Electricity Costs
Maine recorded the largest increase in the country, with electricity prices up by 36.3% over the past year, according to Choose Energy. Connecticut followed with an 18.4% rise, while Utah saw a 15.2% increase. Other states, including Louisiana, New York, and Oklahoma, reported double-digit growth as well. These spikes stand in sharp contrast to states such as Nevada and Hawaii, where rates declined by 17.7% and 7% respectively.
The primary driver of these rising costs is surging demand. On July 28, Americans used a record 758,149 megawatt-hours of electricity in a single hour, according to the EIA. This demand has been fueled not only by an intense summer heatwave but also by a rapidly expanding network of artificial intelligence (AI) data centers.Â
These facilities, which require massive amounts of power to operate, are increasingly concentrated in states served by PJM Interconnection, which coordinates electricity across 13 states and Washington, D.C. According to The Washington Post, residential bills in some PJM states have jumped as much as 20% in New Jersey and 10% to 15% in Ohio.
Infrastructure Strain and the Impact of Technology
The surge in energy demand has put additional pressure on the nation’s power grid and infrastructure. According to Reuters, PJM’s latest capacity auction prices—fees utilities pay to ensure adequate power supply—have increased nearly tenfold, from around $29 to almost $270 per megawatt-day.
Utilities are passing these higher costs directly to consumers, especially in areas experiencing both high population density and heavy data center development.
At the same time, aging infrastructure and delayed investment in renewable energy have compounded the challenge. The EIA notes that weather-related disruptions, from prolonged heat domes to severe storms, further strain the grid and drive up operational costs. While Nevada and Hawaii benefited from local factors that lowered rates, the majority of states remain vulnerable to these market pressures.
