AICoin AI: Surging Data Center Energy Demand Sparks U.S. Power Price Hike

Rising electricity costs across the U.S. trace back to an unexpected culprit: artificial intelligence. Data centers powering advanced AI models now consume 4.4% of national electricity output, a figure projected to triple by 2028. The PJM Interconnection grid, serving Virginia's tech corridor, has seen wholesale power prices spike tenfold since 2022.

Virginia's "data center alley"—home to Amazon and other tech giants—exemplifies the strain. Last year's wholesale electricity auction saw prices jump ninefold in most regions. These costs cascade directly to consumers, compounding existing inflationary pressures on household budgets.

The energy-intensive nature of AI development creates a paradox. While promising technological advancement, the infrastructure demands threaten to offset economic gains through sustained energy inflation. Regional grids face mounting pressure to balance industrial growth with residential affordability.