Voters overwhelmingly rejected data center expansion in local elections Tuesday, with 40 of 41 ballot measures across the country approving restrictions or bans on new facilities, reflecting growing public frustration over rising electricity costs and the broader impacts of artificial intelligence, The Washington Post reports.
However, a new study from researchers at Harvard University and the University of Pennsylvania finds that data centers accounted for just 4% of residential electricity rate increases between 2020 and 2025, suggesting their impact on household utility bills has been relatively limited.Â
Other research has similarly found only modest effects, with an MIT study estimating data centers increased average residential electricity prices by 2.1% between 2010 and 2024. The impact varies by region, however, with areas served by the PJM grid operator, including Pennsylvania, Virginia and Ohio, experiencing increased demand that has driven up power capacity costs and contributed to higher residential rates.Â
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Data centers accounted for a larger share of rising industrial electricity prices, responsible for 15% of increases between 2020 and 2025. Researchers say other factors, including natural gas prices, aging electrical infrastructure and storm-related grid repairs, have played a greater role in residential rate increases.Â
Still, experts warn that rapidly growing data center electricity demand could put additional pressure on prices as utilities build new generation and transmission capacity.Â
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