AI data centres spike electricity costs in Maryland and New Jersey
Rapid expansion of AI data centres in Maryland, Virginia and New Jersey has driven sharp increases in regional electricity consumption, causing residential electricity bills to rise by up to 80 percent and forcing non-AI users to subsidise the infrastructure costs through higher utility rates.
What happened
AI data centres operated by Microsoft and Amazon Web Services in Northern Virginia and the Mid-Atlantic region have sharply increased electricity consumption. In Baltimore, residents report electricity bill increases of up to 80 percent over a few years, with some bills rising 20 percent month-to-month even as individual usage declined.
The surge in power demand stresses the existing grid infrastructure managed by PJM Interconnection and requires utilities to invest heavily in new generation and distribution systems. These infrastructure costs are passed on to residential and business consumers through higher electricity supply charges that do not itemize the data centre portion.
Reported impact
Residents and businesses face substantially higher electricity bills, worsening cost-of-living pressures. Baltimore Gas and Electric customers experienced price increases averaging $32 per month in September 2025, with increases spread across fall and spring months when usage is typically low.
Maryland People's Counsel David Lapp stated that existing customers are taking financial hits now and will face greater impacts going forward. Consumers who do not use AI services are being asked to subsidise the power consumption of large commercial data centres.
Index analysis
The increased demand from data centres stresses grid capacity and exposes inequities in cost allocation between large commercial users and residential consumers. A 2024 US Department of Energy report estimated that data centres would use between 6.7 and 12 percent of the nation's electricity by 2028.
Governance controls
Maryland lawmakers have begun addressing the cost surge from data centre expansion. There is an urgent challenge in balancing the growth of AI infrastructure with fair energy cost allocation and grid reliability, with policymakers and regulators tasked with creating transparent and equitable ways to manage the financial and infrastructural impacts.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.