As more Americans feel the sting of rising electric bills, many question what’s driving this surge beyond the usual suspects like inflation and weather.

New research from InvestorsObserver uncovers a rarely discussed but growing driver: the explosive demand from data centers powering AI, streaming, gaming, and cloud computing.

The findings challenge the simplistic narrative that data centers automatically drive up local electricity costs.

Using detailed state-level electricity price data from 1990 to August 2025, paired with precise data center counts, the study reveals how the digital infrastructure boom affects your power bill, and why the story isn’t as straightforward as “more servers mean higher bills.”

Further, many power professionals suggest that data centers, in many cases, are planning to build small clean natural gas power systems to provide their own power onsite.

Key findings from InvestorsObserver: 

• Electricity prices nationwide surged 34% from 2020 to August 2025, the fastest five-year increase in recent history.
• Despite hosting the most data centers, Virginia saw only a 31% price increase, while California experienced a 64% jump.
• Maine recorded the most dramatic price surge at 94.6% (2020-2025).
• Counter-intuitively, states with more data centers have lower average electricity prices than less digitized states.
• The relationship between data centers and electricity costs isn’t straightforward as North Carolina, Georgia and Iowa maintain moderate prices despite large data center presence.
• 2022-2023 saw the steepest inflation (6% average increase), coinciding with post-pandemic economic recovery.

Click here to read the full report which includes the following topics:

• The 1990s: Stable prices in the pre-digital era
• The 2000s: The first shock wave
• The 2010s: The deregulation paradox
• The 2020s: The great acceleration
• Data Centers: Impact and paradox
• Year-over-year shock: 2020-2025
• Are Data Centers really to blame?
• Volatility is the new normal for America

The report by Analyst Sam Bourgi also provides details on methodology and sources.

Sam Bourgi is a finance analyst and researcher at InvestorsObserver, bringing over 13 years of expertise in financial markets, economics, and monetary policy. His professional background spans the private, nonprofit, and public sectors, where he has held positions such as senior policy adviser, labor market analyst, and marketing director. Sam’s in-depth research and market analysis have been referenced by leading institutions and organizations, including the U.S. Congress, Department of Justice, Chicago Board Options Exchange, Bank for International Settlements, Boston University Law Review, Barron’s, and Forbes.

Founded to empower retail investors with actionable intelligence, InvestorsObserver delivers timely commentary, data-driven studies, and accessible financial tools designed to simplify complex market trends. Its research and insights have been featured by various media outlets, including Yahoo, The Guardian, Morning Star, Nasdaq, and more.

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