Fact Check Team: Should data centers foot the bill of the new power generation?
WASHINGTON (TNND) — Electricity costs continue to climb across the U.S., putting more pressure on household budgets heading into winter.
The National Energy Assistance Directors Association (NEADA) estimates the average household will spend $995 on home heating this winter, an increase of $84 compared to last year. NEADA also reports that residential electricity prices in 2025 are at their highest level in a decade, and that the average monthly electricity bill has increased by about 10% since January.
What’s driving the increase?
While data centers are a major focus of the current debate, NEADA attributes rising electricity prices to multiple factors, including:
- High interest rates, which increase grid financing costs
- Greater reliance on natural gas for power generation
- Rising demand from data centers
- Aging infrastructure
- Regional capacity shortfalls
Trump’s plan: build new “reliable baseload” power in the Mid-Atlantic
In response, the Trump administration says it has a plan to reduce electricity costs by expanding reliable power generation, starting with the Mid-Atlantic region, which is served by PJM Interconnection. According to a Department of Energy fact sheet, the administration wants PJM to accelerate new “reliable baseload” buildout — including coal, natural gas, and nuclear generation. The DOE says the National Energy Dominance Council announced an agreement with governors in the region to push PJM toward more than $15 billion in new reliable generation.
Who pays?
The administration argues that ratepayers should not carry the cost of meeting large new demand drivers. Instead, DOE says PJM should require data centers to pay for the new generation built on their behalf, whether they use the power or not. The administration’s case is that expanding reliable generation while shifting more of the buildout cost onto large new electricity users would reduce pressure on the grid and help stabilize consumer prices.
