ChatGPT and the AI Wave Cause Electricity Prices in the US to Soar

Power transmission line. Illustration photo: REUTERS/TTXVN

The trend runs counter to President Donald Trump's pledge to provide cheaper energy to American households, the sources said.

Specifically, electricity consumption is skyrocketing due to the development of AI data centers, especially concentrated in the area dubbed “Data Center Valley” in the state of Virginia. Since ChatGPT became popular, the demand for AI computing has increased dramatically, putting great pressure on the national power grid.

Experts warn that this wave – combined with slow rollout of new energy projects and closure of old plants – is forcing power companies to make large-scale investments in infrastructure.

PJM, which operates the grid serving about 65 million people in 13 states and Washington, DC, said it will spend $16.1 billion on generators to meet demand between mid-2026 and mid-2027, up 10% from the previous year. Consumers are expected to see their electricity bills rise as much as 5%.

The rising pressure on electricity prices is a blow to President Trump’s repeated pledge to cut household energy costs in half. Electricity prices have risen 5.6% over the past year, compared with overall inflation of just 2.7%, according to the Labor Department.

“This is bad news for consumers,” Timothy Fox, an expert at ClearView Energy Partners, told the Financial Times. “The higher winning bids will continue to increase customers’ electricity bills.”

PJM had previously imposed a price cap after electricity auctions surged 800% last year. These auctions determine how much power plants pay during peak demand periods to avoid blackouts. But this year’s auctions still came close to the cap—at $329 per megawatt-day.

Rising energy costs are also exacerbating inflationary pressures, partly due to Mr Trump’s own policies – including global import tariffs and a “big and beautiful” infrastructure bill – both of which have added to the financial burden on Americans.

Analysts warn that the shortage could worsen in the coming years. PJM forecasts that electricity demand will increase by 32 gigawatts by 2030 — much of it from data centers. As a result, tech giants like Amazon are scrambling to find more energy, pushing up electricity prices even further.

According to HAI VAN/News and People Newspaper

Original article link

Source: https://baovanhoa.vn/nhip-song-so/chatgpt-va-lan-song-ai-khien-gia-dien-tai-my-tang-vot-155581.html