The rise of artificial intelligence and Bitcoin mining is significantly taxing electricity resources, driving up energy costs for Americans living near data centers, even as these trends boost 401(k) accounts.
“The big tech companies are consuming vast amounts of electricity, and we’re the ones facing higher bills,” said Carrie Killingsworth, 53, a financial services professional, in an interview with The Washington Post. “It’s not right for regular customers to subsidize billion-dollar firms.”
Major players like Nvidia, Google, Microsoft, Meta (Facebook), and Amazon are publicly traded, allowing retail investors to benefit from their growth. However, energy price inflation is still affecting Americans in areas close to data centers, even as internet usage expands nationwide, the Post reported.
“We’re witnessing significant growth in data center energy demands across every region,” noted Abe Silverman from Johns Hopkins University. “This is creating substantial upward pressure on both transmission and generation costs.”
Ohio’s energy regulators have recently decided that data centers will be responsible for grid upgrades, despite pushback from tech companies, according to the report. The Data Center Coalition expressed its “disappointment” with the ruling, asserting its commitment to covering the full costs of its energy consumption.
Independent analyst Joseph Bowring highlighted an unsustainable rise in energy demands linked to the AI and Bitcoin mining boom. “We are seeing a fundamental shift in the market,” he told the Post. “These data centers could potentially overwhelm the grid. The current system isn’t viable.”
The demand for data processing extends beyond AI and Bitcoin; all internet activities require energy. “Data centers are the backbone of our digital infrastructure, supporting online purchases, telehealth services, news articles, and digital classrooms,” stated Aaron Tinjum, Vice President of Energy at the Data Center Coalition.
“These facilities enable vital services and innovative technologies that drive our economy and improve our quality of life, ensuring that homes, businesses, schools, hospitals, and government operations run smoothly,” he added.
Every internet and phone user contributes to the rising energy demand with each click and search, according to researcher Sasha Luccioni. “There’s a disconnect,” she told the Post. “When we discuss ‘the cloud,’ we forget it’s rooted in physical data centers—massive buildings as large as football fields.”
