Artificial intelligence and data centers are being pointed to as key factors driving up electricity costs across the United States. As of December 2025, consumers are facing electricity bills that are 42% higher than they were ten years prior.
Calvin Butler, CEO of Exelon, commented, “When demand increases and supply is inadequate, costs go up, and that’s what we’re experiencing right now.”
Interestingly, Trump’s administration has stated that all AI facilities built in the U.S. will be capable of sustaining themselves using their own electricity.
The International Energy Agency reported that, by 2024, U.S. data centers accounted for more than 4% of the country’s total electricity usage—which is comparable to the yearly consumption of all of Pakistan. Projections indicate that data center energy use in the U.S. might surge by 133% by the decade’s end, potentially matching the electricity consumption of an entire country like France.
“We’re headquartered in Chicago and we own ComEd, the fourth-largest electric utility in the U.S. Currently, ComEd’s peak load is around 23 gigawatts, and by 2030, the data center load connected to our system is expected to be 19 gigawatts,” Butler added.
Commonwealth Edison is witnessing a large influx of requests for data center connections, with potential projects totaling over 30 gigawatts anticipated to become operational by 2045.
“Our growth has been unprecedented over the past few decades. As technology advances and more data centers emerge, it’s our responsibility to meet that demand. However, we are also required to create a new supply that is not keeping pace with these emerging demands—that’s the crisis we are facing now,” Butler stated.
In 2026, AI is poised to become a pivotal player in the upcoming energy discussions. Commonwealth Edison is seeking $15.3 billion for necessary upgrades to the power grid over the next four years to address the increasing demand. Although power grid capacity has risen by over 15% nationally in the last ten years, many energy producers argue that it’s still not sufficient.
Bob Mumgaard, CEO of Commonwealth Fusion Systems remarked, “We’re encountering power constraints. We envision a power plant that can be deployed anywhere in a compact form and operated at any moment, and fusion technology aligns perfectly with that need.”
Commonwealth Fusion Systems aims to introduce nuclear fusion into the energy mix, a technology that promises the reliability of traditional nuclear power but without the long-lived radioactive waste or other associated risks.
“Nuclear fusion doesn’t involve chain reactions, resulting only in helium, which is safe and inert—it can’t be weaponized,” said Mumgaard.
With the potential crunch looming in U.S. power supplies, investments in new infrastructure are seen as vital, according to OKLO’s CEO.
Commonwealth Fusion Systems emphasizes the role of AI in advancing fusion energy toward being a viable resource.
Moreover, AI is expected to significantly enhance underused energy resources. Geothermal energy, for instance, remains a minor contributor to the power grid due to high drilling costs and unpredictable infrastructure reliability.
Joel Edwards, co-founder of Zanskar, noted, “If we can drill the ideal geothermal well consistently—selecting the optimal site, designing it correctly, and drilling thousands of feet to reach high temperatures—the potential is immense.” He added, “If we can repeat that reliably, geothermal energy could become the cheapest electricity source.”
Zanskar is working on improving the accuracy of geothermal exploration methods by employing AI-driven mapping to locate previously overlooked resources.
“Being precise about where to look and how to extract geothermal resources can significantly drop costs,” Edwards stated. “That’s our goal, and AI equips us with the necessary tools to achieve it.”
Both geothermal and nuclear fusion technologies can generate electricity anytime, regardless of weather conditions, providing essential support to the power grid—particularly during recent winter storms.
Butler cautioned, “We’ve been raising the alarm for years. It’s like driving with the check engine light on—if you ignore it, you’re just waiting for a costly breakdown. We need to be more vigilant about these issues; Winter Storm Fern is just a precursor to potential future challenges.”
