The surge in electricity prices driven by the data center boom has become a heavy burden for U.S. consumers and businesses, rapidly evolving into a critical political issue. From New Jersey's gubernatorial race to Virginia's congressional seat battles, rising power costs are reshaping voter sentiment.

According to the U.S. Energy Information Administration (EIA), residential electricity prices in the U.S. rose by approximately 10% from January to September this year. States with the highest increases—such as Maryland, Delaware, and California—saw electricity bills jump by 29% over the past three years, as noted in a Goldman Sachs report.

The combination of electricity costs, food prices, and broader inflationary pressures continues to strain household budgets. The National Energy Assistance Directors Association predicts that 4 million households could face power disconnections in 2024 due to unpaid bills, up from 3.5 million last year and 3 million in 2023.

Republicans are capitalizing on voter frustration over soaring electricity bills, aiming to challenge Democratic dominance in key districts by criticizing green energy policies. Ashley Koning, Director of the Eagleton Institute of Politics at Rutgers University, observed, "This utility rate crisis has awakened political campaigns."

**Data Center Demand Fuels Power Cost Surge** After decades of stagnation, U.S. electricity demand is growing again, largely due to data centers powering artificial intelligence (AI). The International Energy Agency (IEA) estimates that data center electricity consumption will double by 2030, with AI-driven demand overwhelming grids in states like Virginia, Pennsylvania, and New Jersey. New Jersey’s retail electricity prices rose 19% year-over-year in August, far above the national average of 6%.

"AI computing isn’t optional—it runs 24/7," said Meredith Fowlie, an energy economist at UC Berkeley. "This inflexible demand limits price adjustments." A Bank of America Institute October report warned that peak capacity pressures could persist, disproportionately affecting low-income households.

**Democratic-Leaning States Hit Hardest, Green Policies Blamed** Goldman Sachs analyst Carly Davenport’s report highlights that the steepest electricity price hikes occurred in Northeastern and Mid-Atlantic states, predominantly Democratic strongholds. Deregulated or competitive energy markets in states like Maryland, Connecticut, and California saw cumulative inflation of 29% over three years, while traditionally regulated markets (e.g., Michigan, North Dakota) experienced slower growth.

Maryland State Representative Brian Chisholm criticized "climate ideology" for sacrificing energy independence, leaving families to bear soaring bills. Republicans argue that aggressive green policies—phasing out fossil fuels for intermittent solar and wind—have weakened grid reliability.

Maine’s 23% year-over-year retail electricity price increase in August reflects infrastructure upgrade costs, including storm-damaged power line repairs. Central Maine Power seeks regulatory approval for further rate hikes to bolster grid resilience.

**Political Fallout Emerges** Electricity costs are now central to midterm election campaigns. In New Jersey, Republican gubernatorial candidate Ciattarelli pledged to exit regional carbon reduction programs to lower bills, while Democrat Mikie Sherrill proposed a utility cost emergency declaration to freeze rates.

Virginia Democratic candidate Abigail Spanberger’s first campaign ad addressed utility rates—no surprise in a state dense with data centers and AI firms, where grid strain and construction costs worry voters and officials alike.

"Energy isn’t just about the environment now—it’s inflation, jobs, and household budgets," said Koning. "Voters aren’t asking how advanced AI is; they’re asking why their power bills doubled."

Businesses are also feeling the pinch. Steve McFadden, owner of a New Jersey coffee shop, raised prices due to soaring electricity costs, while nonprofit HABcore’s CEO Steve Heisman reported a 35% year-over-year increase in power bills for group housing.

Fowlie emphasized electricity’s irreplaceability: "If strawberries get expensive, I can buy apples. But there’s no real substitute for power."