A study published in *Nature Energy* by Cornell University on November 9th shows that by 2025, the cost of grid infrastructure related to data center expansion in the four major U.S. grid regions will reach $8.25 billion. However, data centers will only bear $3.12 billion, or 38%, of the cost; the remaining $5.13 billion, or approximately 62%, will be borne primarily by residential users. The study also found that data center expansion has driven up wholesale electricity prices in some areas, with the most affected grid regions seeing increases exceeding 10% in 2025. Virginia saw an increase of approximately 15%, and the southern San Francisco Bay Area saw an increase of approximately 20%. Meanwhile, U.S. transmission infrastructure investment is projected to increase from $2 billion in 2020 to $34 billion in 2025. The study argues that the current grid cost-sharing mechanism often relies on historical electricity consumption rather than the actual source of new demand, resulting in residents bearing a portion of the infrastructure costs brought about by data center expansion, with rural areas and low-income households being particularly affected.
