$1.4 trillion utility spending spree to keep up with AI data centers could hike electric bills: study

US utilities are planning to spend a record $1.4 trillion on the power grid to keep up with the demands of power-hungry data centers – and the investment could hike electricity bills even higher for Americans, according to a new study.Some 51 investor-owned utilities are planning the spending spree on the country’s aging power grid over the next five years, according to a new report from PowerLines, a consumer education nonprofit.The investment marks a massive 20% jump from what utility companies were planning to spend last year on power plants, transmission lines and distribution poles and wires, according to PowerLines.“There is a tremendous amount of pressure on the US electrical grid,” Charles Hua, the organization’s founder and executive director, told The Post. Data centers – some of which can burn through as much energy as the entire nation of Ireland – have for the first time increased nationwide electricity demand after decades of staying flat, according to Hua.Utility bills have already gone up about 40% since 2021, with no signs of slowing down, according to PowerLines data.Nearly 80 million Americans say they are struggling to pay their utility bills – forgoing necessities like food and health care to keep the lights on at home, according to the nonprofit.“Forty percent price increases in the last five years.I think that’s totally on the table that that could happen again over the next five years,” Hua said.“And the amount of spending that’s occurring is only larger, so who knows? It could be even higher,” he added.However, higher planned capital expenditures are not a guarantee that utility rates are going to increase.Many of the plans still need state regulators’ approval to move ahead, so the full $1.4 trillion investment might not come to fruition.Data centers can theoretically help lower utility bills by spreading fixed costs – like expensive repairs to an outdated grid – across more demand, according to Mike Part...