Technological advancements come at a significant cost. One of the costs that will be particularly noticeable in 2025 is the insatiable appetite of data centers, the engines of the AI revolution.
Instead of trying to reduce consumption, the US government is taking a new approach. Starting in mid-December 2025, the Federal Energy Regulatory Commission will allow data centers to connect directly to power plants for their electricity.
The decision is the result of the Trump administration’s desire to make the United States a global leader in artificial intelligence and revive the country’s manufacturing industry.
Connecting data centers directly to power plants is a double-edged sword, depending on how you look at it. For tech giants, it’s a sweet and easy way to get electricity, and power plant owners have already made a nice profit from it. But utilities are worried that it could be a way for tech companies to avoid paying their share of the cost of maintaining the grid.
In the meantime, there are ordinary people who suddenly have new concerns, such as which state has the most data centers, because it directly affects their electricity bills. While such an idea is claimed to ultimately benefit consumers, concerns about the insane energy consumption of data centers remain high.
Data centers in the United States alone will consume 183 terawatt-hours of electricity in 2024. In 2023, their share of total American electricity consumption was 4.4 percent; but a report by Lawrence Berkeley National Laboratory predicts that number will increase to somewhere between 6.7 and 12 percent in the next few years.
The pressure is not only on the shoulders of electric companies and the national grid, but also on consumers. AI data centers are driving up energy costs across the United States, and citizens are having to pay much more for their electricity; And that’s just because tech giants have come to their city.
