A new study by researchers at Harvard University and the University of Pennsylvania finds that data centers have had only a limited impact on rising U.S. residential electricity prices, accounting for just 4% of utility rate increases over the past five years. Researchers say the main drivers are higher natural gas prices, aging power infrastructure, and the costs of repairing and upgrading electricity grids following natural disasters, The Washington Post reports.
However, some regions, particularly those experiencing rapid data center growth, have seen greater electricity cost increases. The study found that data centers accounted for 15% of price increases for industrial customers between 2020 and 2025.
Despite their limited historical impact on household bills, public opposition continues to grow over concerns about noise, pollution, environmental damage, and AI expansion.
