Data Centers Blamed for Rising Power Costs

Political Scrutiny Intensifies

According to Bisnow, Senate Democrats are turning up the heat on the data center industry. They’ve launched a formal probe into whether data center expansion — especially for artificial intelligence — is driving up power costs for regular Americans.

On Monday, Senators Elizabeth Warren (MA), Chris Van Hollen (MD), and Richard Blumenthal (CT) sent letters to major tech firms. These included Google, Meta, Digital Realty, and CoreWeave. They claim utilities are spending billions on grid upgrades to meet data center demand, then passing those costs onto consumers.

Demands for Accountability

According to the senators, data center operators use aggressive tactics to negotiate low power rates. Meanwhile, everyday ratepayers are stuck footing the bill.

They’re asking for information on how much energy these centers use, details of utility agreements, and any plans to shield the public from higher prices. “American families bankroll the electricity costs of trillion-dollar tech companies,” they wrote.

Bernie Sanders Calls for a Pause

On Tuesday, Sen. Bernie Sanders added his voice. He proposed a national moratorium on new AI data centers. In a video posted online, he warned that Big Tech is moving too fast, without proper oversight or public input.

“We need to slow this down,” Sanders said. “The future of AI should be decided by the people — not a handful of billionaires.”

A Hot-Button Issue Ahead of the 2026 Elections

This growing backlash is becoming a political issue. Democrats are framing data centers as part of a broader fight over corporate accountability and climate action. They are also trying to appeal to groups like the Sierra Club and NAACP, which have raised environmental and equity concerns.

At the same time, political figures are seeing increased support from real estate interests following recent election cycles, adding more complexity to how lawmakers navigate tech and infrastructure policy.

At the local level, opposition to data centers has crossed party lines. In contrast, at the federal level, the issue is now more partisan. Democrats are distancing themselves from the pro-data center stance of the Trump administration.

Republicans Are Also Speaking Up

Despite the partisan divide, some conservatives have voiced concern. Florida Gov. Ron DeSantis has suggested limits on data center growth. Meanwhile, lawmakers like Rep. Marjorie Taylor Greene and Sen. Josh Hawley have warned about unchecked AI expansion.

Thus, resistance is emerging from both sides, though for different reasons.

Tech Firms Defend Their Role

In response to the Senate letters, Amazon quickly pushed back. The company published a report titled “Amazon data centers aren’t raising your electricity bills.” It argues that Amazon pays for its power and often contributes more than it consumes in infrastructure costs.

“First and foremost, Amazon pays for its own electricity,” the company wrote. “In some regions, we actually pay more than the cost of our operations.”

Public Messaging Campaigns Ramp Up

Other firms are also stepping in. Meta recently launched a $5M national ad campaign. It features residents in small towns like Altoona, Iowa, describing how data centers helped boost their local economies.

Industry groups, including the Data Center Coalition and National Artificial Intelligence Association, are now lobbying harder in Washington. They fear a hostile political environment could lead to stricter regulations.

Why It Matters

The data center debate is no longer just about infrastructure. It’s about energy, fairness, and who controls the future of AI.

With demand for computing power growing rapidly, both the political and public spotlight on data centers will likely intensify. How the tech industry responds could shape policy — and public opinion — ahead of the 2026 elections.