Study: Data center energy costs hit lower income households hardest

A new study has revealed that data center energy costs are disproportionately impacting lower-income, rural households in the United States. Researchers from Cornell University analyzed energy demand growth and infrastructure projects along major U.S. power grids from 2020 to 2025, as well as data from 4,000 data centers. The study found that AI data centers raised wholesale power prices, with the highest increases in regions already struggling with stretched power grids.

In the Southern Bay Area of California, data centers raised wholesale energy prices by nearly 20% in 2025, while in Texas' Dallas-Fort Worth area, the increase reached 17%. These high prices affected residential customers, who paid significant portions of the expenses for data center power infrastructure. The study noted that traditional formulas used to allocate energy costs based on past consumption rather than growth led to rural and lower-income households bearing the burden.

Despite data centers clustering around metropolitan areas, their financial impacts often extended to surrounding suburban and rural regions due to policies governing cost-sharing. The researchers emphasized the need for policy review and suggested that data centers could reduce energy use during peak demand hours or directly pay states for added power demands.