The rapid growth of generative artificial intelligence (AI) and cloud computing is colliding strongly with the United Nations’ electricity infrastructure, driving up utility costs for both consumers and local businesses.
This comes as major technology companies such as Amazon, Microsoft, Google, and Meta are in a fierce race to build “hyperscale” data centers across the United States.
Because the U.S. power grid cannot immediately produce new energy to match this sudden surge, demand far exceeds supply, pushing wholesale power costs to historic highs.
Electric rates at Belden Brick Company in Sugarcreek, Ohio have remained relatively stable for many years.
However, last year saw electricity costs jump by 90%, primarily due to increased power demand from data centers in the region.
Pioneer manufacturers estimate that tower prices are rising primarily through monthly capacity fees, which have recently jumped from $1,600 to $12,000 per month as power-hungry data centers serving the AI industry proliferate.
Electricity costs for factories, a core expense, are rising faster than for many households and other businesses, according to manufacturers and industry advocates, according to a Reuters review of U.S. energy data.
Meanwhile, federal, state and local governments responding to consumer complaints and concerns about power grid stability are pushing big technology companies to pay more for anticipated demand.
Rising costs and regulatory uncertainty threaten the survival of some factories as President Donald Trump prioritizes domestic manufacturing, advocates and policy experts say.
These companies are considering raising prices, slowing growth and, in some cases, relocating.
Aaron Tinjam, vice president of energy at the Data Center Coalition, an industry group, said data center growth has “finally forced us to address some of the tough decisions we’ve always had to face.”
Additionally, average industrial power prices increased by 31% in Pennsylvania and 26% in Ohio as of December 2025 compared to 12 months ago, while national industrial power rates increased by 7%.
Residential customers in these two states grew by 14% and 9%, respectively.
Economists and industry officials say even a 1% or 2% increase in power costs could place a heavy burden on factory owners, who often operate on thin margins and use large amounts of electricity.
“This could have short-term and long-term impacts on whether these facilities can continue to operate,” said Paul Cicio, president of the industrial energy consumer of America, an industry group.
