States Address Data Center Impact on Electric Bills Amid Policy Concerns

Multiple states are implementing policy measures to address concerns that data centers operated by major technology companies are contributing to rising electricity costs for residential and business customers. Governors from five states, led by Pennsylvania's Josh Shapiro, have challenged pricing structures established by the mid-Atlantic grid operator PJM Interconnection, warning that customers are paying billions more than necessary. At least a dozen states are exploring methods to adjust how data centers pay for local transmission costs, with some commissioning studies on potential rate increases.