The political claim

Political ads across Ohio, Texas, Pennsylvania and Michigan claim data centers are driving up electricity prices. Democratic candidates Sherrod Brown and James Talarico say facilities cause higher bills.

“No one asked for that data center to be built here, and no one here is getting a damn thing from it except higher electric bills.”

Tens of millions spent on ads

Tens of millions of dollars have been spent airing ads about data centers and electricity prices this cycle, according to the ad-tracking service AdImpact, with heavy spending in key states.

Public opposition is bipartisan

A majority of Americans would not support a nearby data center, making opposition rare bipartisan agreement. Rising electricity prices are the top reason given for opposing the facilities.

The DOE secretary's claim

Department of Energy Secretary Chris Wright claims data centers bring beneficial effects on electricity prices. He says they are accompanied by multiyear freezes and reduce electricity costs.

“The actual record of data centers coming on is they almost always are accompanied by a multiyear freeze in electricity prices.”

Wright's claim is incomplete

Wright is correct that data centers could theoretically bring down prices. But he omits data from his own agency showing the opposite is happening for many Americans in some regions.

PJM prices likely went up

At least for the PJM Interconnection, the nation's largest grid operator serving more than sixty five million people in the Midwest and mid-Atlantic, prices have likely gone up due to data centers.

Lawrence Berkeley study findings

A July report from the Lawrence Berkeley National Laboratory and the Brattle Group found that increased demand from large data centers contributed to significant price increases in the PJM region in twenty twenty five.

But data centers aren't the only cause

The report notes that most observed price increases in recent years are not due to data centers. Overall, until twenty twenty five, increased load growth was associated with lower retail electricity prices.

Regional variation matters

Data centers have contributed to price increases in Ohio and other Midwest states. In Texas, prices have risen only modestly because the state is rapidly deploying new low-cost wind and solar power.

It depends on multiple factors

Energy economist Jacquelyn Pless says data centers can put either upward or downward pressure on electricity prices. It depends on serving costs, infrastructure efficiency, and who pays for required investments.

“Data centers can put either upward or downward pressure on electricity prices.”

National prices rose twenty nine percent

According to the July LBNL report, national average retail electricity prices rose twenty nine percent between twenty nineteen and twenty twenty five. Adjusted for inflation, the figure falls to just three percent.

Main drivers are fuel and infrastructure

The main drivers of price increases are fuel price increases, especially for natural gas, and the cost of replacing and updating grid infrastructure. Much of the U.S. grid is old and due for improvement.

Some states reduced prices while growing

North Dakota, New Mexico and Nebraska each significantly grew their load while reducing inflation-adjusted prices between twenty nineteen and twenty twenty five, showing data centers can coexist with lower costs.

MIT study found modest increases

A working paper from MIT's Center for Energy and Environmental Policy Research found that between twenty ten and twenty twenty four, data center entry increased retail electricity rates by two point seven percent overall.

PJM's capacity market problem

In PJM, data centers appear to have raised costs through the grid operator's capacity market, which pays suppliers for future electricity promises. Prices rose nearly tenfold between mid-twenty twenty four and mid-twenty twenty five.

Ratepayers face billions in extra costs

Monitoring Analytics, PJM's independent market monitor, concluded data centers are the primary reason for high capacity market prices.

Trump's Ratepayer Protection Pledge

In March, Trump issued his Ratepayer Protection Pledge, calling for data center companies to build their own power supplies and foot the bill for upgrades. But the pledge is voluntary and not legally binding.

Experts skeptical of the pledge

Experts told FactCheck.org the pledge has little value. One called it a messaging document. Another said compliance is not monitored or enforced. Real decisions will happen state by state through utility commissions.

“It's nothing. It's just a messaging document.”

Legislation stalled in Senate

The Ratepayer Protection Act passed the House with bipartisan support but stalled in the Senate. It requires state regulators to consider controls for facilities demanding one hundred megawatts or more of power.

The real question ahead

The key question is not whether data centers promise to pay their own way, but whether new rates and contracts actually ensure existing customers are not left covering the costs of infrastructure.

“Ultimately, the key question isn't simply whether a data center promises to pay its own way, but whether new rates and contracts actually ensure that existing customers aren't left covering the costs.”