The Hidden Cost of America’s AI Boom

Artificial intelligence is growing fast, and the data centers powering it are popping up across the country just as quickly. Behind the scenes, these facilities require massive amounts of electricity, putting pressure on local grids and potentially driving up energy costs.

Payless Power analyzed data center locations, electricity rate trends, and public opinion to get a clearer picture of how this rapid expansion is affecting everyday Americans. For households already managing tight budgets, these changes could have real consequences.

Key Takeaways

• 60% of all U.S. data centers are concentrated in just 10 states. That leaves 40 states to share the remaining 40%.

• Virginia alone hosts 579 data centers, or 14% of the entire U.S. total, with 6.64 facilities per 100,000 residents.

• Residential electricity rates in the 10 states with the most data centers have risen between 19.4% and 66.9% since 2019.

• 5 of the 10 states with the most data centers have seen residential electricity rates rise faster than the national average (+26.7%) since 2019, led by California at +66.9%.

• 88% of Americans want AI companies to pay a dedicated surcharge to cover grid upgrade costs.

• 4 in 5 Americans have noticed a higher electricity bill over the past 2 years, but fewer than 1 in 5 say their government has kept them informed about data center development in their area.

Where the Infrastructure Actually Lives

The rapid growth of AI hasn’t been evenly spread across the country. Some states and cities have become major hubs, while others have seen very little development.

A total of 4,088 operational data centers were identified across all 50 states and Washington, D.C. However, the majority were clustered in a small group of states. Sixty percent of all U.S. data centers were located in just 10 states, leaving the remaining 40 states to share the other 40%.

Virginia stood out as the clear leader, hosting 579 facilities, representing 14% of the national total. On a per-person basis, it also ranked highest, with 6.64 data centers per 100,000 residents. Texas followed with 411 data centers, while California had 289, showing how key economic hubs are also becoming digital infrastructure centers.

Looking at total data center counts shows a clear divide between the nation’s biggest infrastructure hubs and the states with only a minimal footprint.

Top 10 States With the Most Data Centers

1. Virginia: 579
2. Texas: 411
3. California: 289
4. Illinois: 232
5. Georgia: 214
6. Ohio: 201
7. Arizona: 163
8. New York: 133
9. Oregon: 123
10. Florida: 108

Bottom 10 States With the Fewest Data Centers

1. Vermont: 3
2. Alaska: 6
3. District of Columbia: 6
4. Rhode Island: 7
5. South Dakota: 7
6. West Virginia: 8
7. Hawaii: 9
8. Maine: 9
9. New Hampshire: 10
10. Arkansas: 11

At the city level, Dallas led the country with 181 data centers, followed by Chicago with 159 and Atlanta with 156.

Top 10 Cities by Data Center Count

1. Dallas, TX: 181
2. Chicago, IL: 159
3. Atlanta, GA: 156
4. Phoenix, AZ: 153
5. Ashburn, VA: 128
6. Columbus, OH: 113
7. Sterling, VA: 89
8. Richmond, VA: 74
9. Des Moines, IA: 69
10. Manassas, VA: 66

Looking at data centers on a per capita basis reveals a different picture, highlighting smaller and less populous states where infrastructure is more concentrated relative to the number of residents.

Top 10 States With the Most Data Centers per 100,000 Residents

1. Virginia: 6.64
2. Wyoming: 3.6
3. Iowa: 2.96
4. North Dakota: 2.93
5. Oregon: 2.91
6. Montana: 2.3
7. Arizona: 2.19
8. Nevada: 2.13
9. Georgia: 1.94
10. Illinois: 1.85

Bottom 10 States With the Fewest Data Centers per 100,000 Residents

1. Arkansas: 0.36
2. Mississippi: 0.41
3. West Virginia: 0.45
4. Vermont: 0.46
5. Alabama: 0.47
6. Florida: 0.48
7. Louisiana: 0.48
8. Hawaii: 0.63
9. Maine: 0.64
10. Massachusetts: 0.64

Data Centers, Dense States, and Rising Rates

As more data centers come online, the demand for electricity has surged, especially in the states hosting the most facilities.

Residential electricity rates in the 10 states with the highest number of data centers increased between 19.4% and 66.9% from 2019 to 2024. These rising costs suggest that increased energy demand may be putting pressure on local power systems.

Half of these high-density states experienced rate increases that outpaced the national average of 26.7%. California saw the sharpest jump, with electricity rates climbing 66.9% over the same period. For residents, especially those on fixed or limited incomes, these increases can make it harder to keep monthly energy bills manageable.

What Americans Think About AI and Their Power Bills

As energy costs rise, many Americans are starting to connect the dots between new infrastructure and their monthly expenses.

A strong majority of Americans (88%) said they want AI companies to pay a dedicated surcharge to help cover the cost of upgrading the power grid. This reflects growing concern that the financial burden of expansion is falling too heavily on everyday consumers.

At the same time, 4 in 5 Americans reported noticing higher electricity bills over the past 2 years. Despite this, fewer than 1 in 5 said their government has kept them informed about data center development in their area. This gap between rising costs and limited communication has left many feeling uncertain about what’s driving their energy bills.

The Future of Power in an AI-Driven World

The expansion of AI infrastructure is changing where energy is used and how much it costs. Data centers have clustered in a handful of states, and many of those same areas have seen notable increases in electricity rates.

Americans are also becoming more aware of rising costs and are calling for greater accountability from the companies driving this growth. As demand for AI continues to rise, the challenge will be balancing innovation with affordability, especially for households already working to keep energy costs under control.

Methodology

This study combines three primary data sources to examine the geographic distribution of U.S. data center infrastructure, associated electricity rate trends, and public opinion among Americans living in states with significant data center concentration.

• Data center distribution: Data center counts by state and city were sourced directly from DataCenterMap.com, scraped in April 2026.

• Electricity rate trends: Residential electricity rate data was sourced from the U.S. Energy Information Administration (EIA) Form EIA-861 Annual Electric Power Industry Report, covering 2019 through 2024.

• Survey: Payless Power surveyed 1,003 Americans living in states with significant data center concentration to explore attitudes, perceptions, and concerns around AI data center infrastructure, electricity costs, and power grid reliability. The survey was conducted in March 2026.

About Payless Power

Payless Power helps Texas residents take control of their energy costs with simple, prepaid electricity plans. Whether you’re managing a tight budget or want more flexibility, Payless Power offers options designed to fit your needs. Explore affordable plans and stay in control of your usage with no long-term commitments.

Fair Use Statement

This content may be shared with others for noncommercial purposes only. If referenced or redistributed, please include attribution with a link back to Payless Power.

URL copied to clipboard