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HARRISBURG, Pa. 鈥� With electricity bill amounts surging upward, states are under pressure to insulate regular household and business ratepayers from the costs of feeding Big Tech’s聽energy-hungry聽data centers.

It’s not clear whether any state has a solution, and the actual effect of data centers on electricity bills is difficult to pin down. Some critics question whether states are bold enough to take a hard line against tech behemoths like Microsoft, Google, Amazon and Meta.

But more than a dozen states have begun taking steps as data centers drive a rapid build-out of power plants and transmission lines.

That has meant pressuring the nation’s biggest power grid operator to clamp down on price increases, studying how data centers impact electricity bills or pushing data center owners to pay a larger share of local transmission costs.

Rising power bills are 鈥渟omething legislators have been hearing a lot about,鈥� said Charlotte Shuff of the Oregon Citizens’ Utility Board, a consumer advocacy group. 鈥淚t’s something we’ve been hearing a lot about. More people are speaking out at the public utility commission in the past year than I’ve ever seen before. There’s a massive outcry.鈥�

Some data centers could require more electricity than cities the size of Pittsburgh, Cleveland or New Orleans, and make huge factories look tiny by comparison. That’s pushing policymakers to rethink a system that, historically, has spread transmission costs among classes of consumers that are proportional to electricity use.

鈥淎 lot of this infrastructure, billions of dollars of it, is being built just for a few customers and a few facilities, and these happen to be the wealthiest companies in the world,鈥� said Ari Peskoe, who directs the Electricity Law Initiative at Harvard University. 鈥淚 think some of the fundamental assumptions behind all this just kind of breaks down.鈥�

A fix, Peskoe said, is a 鈥渃an of worms鈥� that pits ratepayer classes against one another.

Some officials downplay the role of data centers in pushing up electric bills.

Tricia Pridemore, who sits on Georgia’s Public Service Commission and is president of the National Association of Regulatory Utility Commissioners, pointed to an already tightened electricity supply and increasing costs for power lines, utility poles, transformers and generators as utilities replace aging equipment or聽harden it聽against extreme weather.

The data centers needed to accommodate the聽artificial intelligence聽boom are still in the regulatory planning stages, Pridemore said. The Data Center Coalition, which represents Big Tech firms and data center developers, has said its members are committed to paying their fair share.

But growing evidence suggests that some Americans’ electricity costs are rising to subsidize the massive energy needs of Big Tech as the U.S. competes in a聽race against China聽for聽artificial intelligence superiority.

Data and analytics firm Wood Mackenzie recently published a report that suggested 20 proposed or effective specialized rates for data centers in 16 states it studied aren’t nearly enough to cover the cost of a new natural gas power plant.

In other words, unless utilities negotiate higher specialized rates, other ratepayer classes 鈥� residential, commercial and industrial 鈥� are likely paying for data center power needs.

Meanwhile, in June, Monitoring Analytics, the independent market watchdog for the mid-Atlantic grid, produced research showing that 70 percent 鈥� or $9.3 billion 鈥� of last year’s increased electricity cost was the result of data center demand.

Last year, five governors led by Pennsylvania’s聽Josh Shapiro聽began pushing back against power prices set by mid-Atlantic grid operator PJM Interconnection after that amount spiked nearly sevenfold. They warned of customers 鈥減aying billions more than is necessary.鈥�

PJM has yet to propose ways to guarantee that data centers pay their share, but Monitoring Analytics is floating the idea that data centers should be required to procure their own power.

In a filing last month, it said that would avoid a 鈥渕assive wealth transfer鈥� from average people to tech companies.

At least a dozen states are eyeing ways to make data centers pay higher local transmission costs.

In Oregon,聽a data center hot spot, lawmakers in June passed legislation ordering state utility regulators to develop new (presumably higher) power rates for data centers.

The Oregon Citizens’ Utility Board says there is clear evidence that costs to serve data centers are being spread among all customers 鈥� at a time when some electric bills there are up 50 percent over the past four years and utilities are disconnecting more people than ever.

New Jersey’s governor last month signed legislation commissioning state utility regulators to study whether ratepayers are being hit with 鈥渦nreasonable rate increases鈥� to connect data centers and to develop a specialized rate to charge data centers.

In some other states, like Texas and Utah, governors and lawmakers are trying to avoid a supply-and-demand crisis that leaves ratepayers on the hook 鈥� or in the dark.

In Indiana, state utility regulators approved a settlement between Indiana Michigan Power Co.,聽Amazon,聽Google, Microsoft and consumer advocates that sets parameters for data center payments for service.

Kerwin Olsen of the Citizens Action Council of Indiana, a consumer advocacy group, signed the settlement and called it a 鈥減retty good deal鈥� that contained more consumer protections than what state lawmakers passed.

But state law doesn’t force large power users like data centers to publicly reveal their electric usage, he said, so pinning down whether they’re paying their fair share of transmission costs 鈥渨ill be a challenge.鈥�

In a March report, the Environmental and Energy Law Program at Harvard University questioned the motivation of utilities and regulators to shield ratepayers from footing the cost of electricity for data centers.

Both utilities and聽states have incentives聽to attract big customers like data centers, it said.

To do it, utilities 鈥� which must get their rates approved by regulators 鈥� can offer 鈥渟pecial deals to favored customers鈥� like a data center and effectively shift the costs of those discounts to regular ratepayers, the authors wrote. Many state laws can shield disclosure of those rates, they said.

In Pennsylvania, an聽emerging data center hot spot, the state utility commission is drafting a model rate structure for utilities to consider adopting. An overarching goal is to get data center developers to put their money where their mouth is.

鈥淲e’re talking about real transmission upgrades, potentially hundreds of millions of dollars,鈥� commission Chairman Stephen DeFrank said. 鈥淎nd that’s what you don’t want the ratepayer to get stuck paying for.鈥�