US lawmakers in letter to Google, Microsoft, Amazon and Meta: Your data centers are increasing electricity bills for Americans as…

Three Democratic senators are demanding answers from major tech companies about whether their energy-hungry data centers are driving up electricity costs for ordinary Americans, sending letters to Google, Microsoft, Amazon, Meta and three data center operators. Senators Elizabeth Warren of Massachusetts, Chris Van Hollen of Maryland and Richard Blumenthal of Connecticut expressed alarm that utility companies are passing billions in infrastructure upgrade costs to consumers while tech firms expand their artificial intelligence operations. “American families bankroll the electricity costs of trillion-dollar tech companies,” the lawmakers wrote, requesting detailed responses by January 12.

The investigation targets seven companies total, including data center specialists CoreWeave, Digital Realty and Equinix. The senators cited regions with significant data center activity that have seen electricity price increases as high as 267% over five years, with national household bills rising 13% this year alone.

Data centers now consume over 4% of US electricity, projected to triple by 2028

Data centers currently account for more than 4% of America’s electricity consumption, a figure the Department of Energy expects to reach 12% by 2028. The surge is driven by AI systems, which require vastly more computing power than traditional internet services. A single data center can consume enough electricity to power hundreds of thousands of homes, forcing utilities to build new power plants and transmission lines.

The lawmakers are seeking transparency on several fronts: companies’ current and projected data center counts, energy usage patterns, actions taken to prevent cost-shifting to consumers, and details about tax incentives and lobbying expenditures related to data center construction.

Tech companies face scrutiny over confidential utility deals and public statements

The investigation highlights a disconnect between tech companies’ public commitments and their actions. While firms publicly claim they want to pay their fair share, they’ve simultaneously opposed state and local regulatory efforts, according to the senators. Most contracts between data centers and utilities remain confidential, leaving consumers unaware of why their bills are rising.

Amazon responded by challenging critics to “show their data,” stating the company pays its own electricity costs. Digital Realty said it looks forward to working with officials on digital infrastructure investment. Microsoft and Meta declined comment, while Google and the three data center operators didn’t immediately respond.