But who and what are to blame? And how can these problems be solved—or at least lessened?
The AI data center boom is a growing part of cost hikes, but it’s only a piece of the puzzle, and it’s attracting an outsized portion of the blame, according to power analysts and energy watchdogs. After all, residential electricity prices have skyrocketed almost 30% since 2021—going back prior to the launch of ChatGPT.
An aging power grid, climate change, rising gas and equipment costs, coal and gas plant closures, and antiquated utility profit models are all combining to put pressure on utility bills as well, they said.
Utilities, power generators, natural gas producers, hyperscalers, politicians, and state public service commissions all play key roles in either aiding or exacerbating these problems. And, despite what partisan politicians argue, it’s neither the choice between renewable energy nor fossil fuels that’s driving up costs, said Charles Hua, executive director of the non-profit PowerLines.
“It’s the grid. It’s the local poles and wires,” Hua told Fortune. “The grid is getting old, and it costs a lot of money to replace or repair.”
