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Energy Affordability During an Era of Increased Electricity Demand for AI Data Centers

Energy & Utilities Technology

Published on September 1, 2026

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Energy affordability and the construction of data centers, including for the use and development of Artificial Intelligence (AI), are increasingly important issues, not only in Congress but also in rural and urban communities across the country. As data centers continue to be developed across the US to support the growing use of generative AI models, move from on-premises compute to more efficient cloud computing, and the rising national security concerns about maintaining US competitiveness in AI relative to China, it is clear that demand for electricity for AI data centers will continue to rise.

This Basic will provide an overview of what AI data centers are, where they are located, how they function, and how they affect electricity usage and rates, water consumption, and overall affordability for Americans.