‘People really effing hate data centers’: How the AI buildout became the midterms’ affordability issue

Many voters in the recent midterms considered the cost of living a top issue, with electricity bills being a key concern, according to AP exit polls. Data centers were frequently blamed for driving up these bills, particularly in the Midwest and Mid-Atlantic regions. The link between data centers and rising energy costs stems from capacity prices on PJM Interconnection, a grid operator serving 13 states.

These prices increased dramatically from $28.92 per megawatt-day in 2024-25 to $329.17 for 2026-27, with data centers accounting for 63% of this price increase or $9.3 billion in recovered costs for customers, according to a report by the Institute for Energy Economics and Financial Analysis.

The cost increase could lead to even higher residential electricity bills, with rates potentially climbing 30% to 60% by 2030, estimates suggest. Data center operators argue that they should absorb the cost of their energy demand, while opponents insist that these companies should contribute to the expenses. This debate was prominently featured in campaign platforms, with some candidates vowing no rate hikes and others proposing moratoriums on new data centers.

The issue resonated with voters, with at least 14 Ohio municipalities passing restrictions on data centers, and 10 states considering data center measures in the election. Despite this, data center expansion continues, with capacity under construction increasing by 48% nationwide.