Dallas Fed says AI data centers already raise wholesale power costs 2 to 6 percent

Americans may feel the artificial intelligence buildout first on their electric bills, according to Federal Reserve Bank of Dallas research summarized by Fox News.

Researchers estimate existing data centers have already pushed average wholesale electricity prices 2 to 6 percent higher nationwide, with larger increases where facilities cluster. In a preferred middle-range scenario, the cost of generating electricity could run 20 to 30 percent higher by 2028 than it would without new data centers.

That figure is not a straight prediction that every household bill will jump by the same amount. Wholesale power is only part of a retail bill, alongside transmission and distribution. Dallas Fed researchers said energy costs make up roughly half of a typical retail electricity price, and wholesale changes often take time to reach household rates.

A single large data center can use as much electricity as a small city, the Fed materials noted. As more centers connect to the grid, utilities may need extra power plants, transmission lines, and substations. Who pays for those upgrades depends on how regulators split costs between data-center customers and other ratepayers.

President Trump has pushed to expand U.S. AI infrastructure while backing a voluntary pledge aimed at keeping data centers from driving up household utility bills. In Texas, Gov. Greg Abbott paused new grid connections for some projects until the state can gauge strain on the power supply, Fox News reported.

For retirees and other fixed-budget households, the practical message is gradual pressure rather than overnight sticker shock. Local rate cases, fuel charges, and state decisions on who funds data-center upgrades will matter as much as the national wholesale estimate.