In December 2025, a group of prominent U.S. lawmakers launched a sweeping investigation into whether major technology companies are effectively passing the rising costs of artificial intelligence infrastructure onto everyday Americans. Senators Elizabeth Warren, Chris Van Hollen, and Richard Blumenthal sent investigative letters to Google, Microsoft, Amazon, and Meta, accusing them of “bankrolling” their massive AI expansions through higher residential electricity bills.
At the center of the controversy are AI data centers energy-hungry facilities that power large language models, cloud computing, and advanced AI systems. Lawmakers argue that the explosive growth of these data centers is straining the nation’s electrical grid and driving up costs for families who see no direct benefit from the boom.
How AI Data Centers May Be Raising Power Bills
According to the senators, tech companies’ unprecedented energy demand is creating several financial pressures on consumers. Utility providers are being forced to invest billions of dollars in new power plants, transmission lines, and grid upgrades to accommodate data centers. Lawmakers allege these infrastructure costs are often recovered by raising residential electricity rates rather than charging tech companies proportionally.
Another concern involves so-called “sweetheart deals.” The investigation claims that contracts between utilities and data center operators are frequently confidential, allowing large tech firms to negotiate discounted electricity rates. When utilities offer these lower prices to data centers, the shortfall may be offset by higher charges to households and small businesses.
In regions with heavy data center concentration, the effects are already visible. Northern Virginia, a major hub for cloud and AI infrastructure, has reportedly seen wholesale electricity prices surge by as much as 267% over the past five years. Lawmakers warn that trillion-dollar companies are effectively outbidding families for access to basic power.
Alarming Data Behind the Investigation
The letters cite projections from the U.S. Department of Energy showing data centers could consume 12% of all U.S. electricity by 2028, up from roughly 4% today. One example highlighted Indiana Michigan Power, which estimates it would need $17 billion in new power plants to meet regional data center demand—costs likely passed on to ratepayers.
As of September 2025, the average U.S. household electricity bill had already risen 7% year over year, intensifying public concern.
What Lawmakers Are Demanding
The senators have ordered tech companies to provide detailed disclosures by January 12, 2026, including energy usage data, electricity rates paid compared to residential customers, tax incentives received, and steps taken to prevent cost-shifting to consumers.
Industry Pushback and Federal Scrutiny
Amazon has pushed back, releasing a white paper claiming some data centers actually overpay for electricity, generating excess revenue for utilities. Meanwhile, Senator Ed Markey has urged the Federal Energy Regulatory Commission to step in, citing its duty to ensure rates remain “just and reasonable.”
With some lawmakers, including Senator Bernie Sanders, calling for a national moratorium on new data centers, the debate underscores a growing tension between AI innovation and the affordability of essential public utilities.
