The biggest bottleneck for AI in the United States: electricity prices
Electricity prices in the United States have risen by 10% since January and are expected to continue climbing due to the "Inflation Reduction Act." Power demand has increased for the first time as data centers power artificial intelligence, leading to soaring utility costs. This topic has gained attention in the New Jersey gubernatorial race, with Virginia Democratic candidate Abigail Spanberger mentioning utility rates in her advertisements, reflecting the challenges posed by AI companies establishing data centers in the state
Since January, electricity prices in the United States have risen by 10%, and the "Inflation Reduction Act" will ensure that electricity prices continue to rise. Monthly electricity bills are thundering down on American households.
For the first time in decades, electricity demand in the U.S. has increased, largely due to data centers powering artificial intelligence.
Media outlets are reporting a phenomenon of soaring utility costs across the country, and savvy Democrats are capitalizing on the resulting public frustration. This topic has become very popular in the New Jersey gubernatorial race, with Virginia Democratic gubernatorial candidate Abigail Spanberger mentioning utility rates in her first ad. This is no coincidence—AI companies are establishing data centers throughout Virginia, posing challenges for the state.
