Data centers are concentrated in these states. Here’s what’s happening to electricity prices

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1 hour ago

November 14, 2025

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Electricity prices are surging, voters are growing angry, and the artificial intelligence industry’s data centers are increasingly a target for blame with U.S. mid-term elections on the horizon.

Residential utility bills rose 6% on average nationwide in August compared with the same period in the previous year, according to the U.S. Energy Information Administration.

The reasons for price increases are often complex and vary by region. But in at least three states with high concentrations of data centers, electric bills climbed much faster than the national average during that period. Prices, for example, surged by 13% in Virginia, 16% in Illinois and 12% in Ohio.

The tech companies and AI labs are building data centers that consume a gigawatt or more of electricity in some cases, equivalent to more than 800,000 homes, the size of a city essentially.

Virginia has the highest concentration of data centers in the world. Democrat Abigail Spanberger won the state’s recent governor’s race in a landslide by campaigning on cost of living. Spanberger put at least part of the blame for rising electricity prices on data centers, promising to make tech companies “pay their own way and their fair share” of the escalating costs.

The governor’s race could be a harbinger of political headwinds for the AI industry’s data center buildout with the mid-term elections just a year away and Democrats zeroing in on affordability as their central issue. In Washington, some Democratic senators are targeting the close relationship that President Donald Trump has developed with the leaders of the major tech companies and AI labs.

Sen. Richard Blumenthal of Connecticut and Sen. Bernie Sanders of Vermont took aim this week at what they described as the White House’s “sweetheart deals with Big Tech companies,” accusing the administration of failing to protect consumers from “being forced to subsidize the cost of data centers.”

“The techlash is real,” said Abraham Silverman, who served as general counsel for New Jersey’s public utility board from 2019 until 2023 under outgoing Democratic Gov. Phil Murphy.

“Data centers aren’t always great neighbors,” said Silverman, now a researcher at Johns Hopkins University. “They tend to be loud, they can be dirty and there’s a number of communities, particularly in places with really high concentrations of data centers, that just don’t want more data centers.”

Virginia, Ohio and Illinois

Looking at the top fives states for data centers can help sort out some of the politics of data centers from what is actually happening to electricity prices.

Virginia, Illinois and Ohio are among those states and are mostly served by the same grid operator, PJM Interconnection. PJM is the largest grid in the U.S., serving more than 65 million people across 13 states including New Jersey where Silverman advised the state utility board.

The PJM grid is facing a major imbalance between demand and supply. It holds auctions to secure electric capacity from power plants to ensure the grid remains reliable. The auction for 2024 to 2025 resulted in a bill of $2.2 billion. The bill then surged more than 500% to $14.7 billion for 2025 to 2026.

An independent watchdog that monitors those PJM auctions found that data center demand, actual and forecast, made up $9.3 billion, or 63% of the total power capacity bill for 2025 to 2026. In the latest auction, prices jumped another 10% to $16.1 billion.

“Data center load growth is the primary reason for recent and expected capacity market conditions, including total forecast load growth, the tight supply and demand balance, and high prices,” the firm Monitoring Analytics said in its June Independent Market Monitor report.

Those capacity prices get passed down to consumers in their utility bills, Silverman said. The data center load in PJM is also impacting prices in states that are not industry leaders such as New Jersey, where prices jumped about 20% year over year. Democrat Mikie Sherrill won the governor’s race in the Garden State in part on promising to freeze electric bill increases.

“It is an extremely large component of the affordability crisis we’re experiencing right now,” Silverman said of data center impact on capacity prices.

There are other reasons for rising electricity prices, Silverman said. The aging electric grid needs upgrades at a time of broad inflation and the cost of building new transmission lines has gone up by double digits, he said.

The utilities also point to rising demand from the expansion of domestic manufacturing and the broader electrification of the economy, such as electric vehicles and the adoption of electric heat pumps in some regions.

Although some Democrats are blaming the White House, the conditions that led to rising electricity prices in the PJM region began before the second Trump administration took office.

PJM’s process for bringing new electric supply online has “crashed and burned,” Silverman said. Tax subsidies under the Inflation Reduction Act led to a surge of renewable energy projects waiting for grid connection. PJM is struggling to keep up with approvals, which can take five years in some cases, he said.

PJM’s watchdog said the grid may have seen tight power supplies without data centers, but the demand growth would have been slower and allowed more time for the market to address it.

“It is misleading to assert that the capacity market results are simply just a reflection of supply and demand,” the watchdog said, describing the rapid load growth from data centers as “unprecendented.”

Trump promised to cut electricity prices in half during his first year in office. That has not happened and is unlikely to happen in the coming years due to tight supply and demand.

“It’s hard to see utility bills coming down in this decade,” said Rob Gramlich, president of Grid Strategies, a power sector consulting firm.

Texas and California

In other states, however, the relationship between rising electricity prices and data centers is less clear. Texas, for example, is second only to Virginia with more than 400 data centers. But prices in the Lone Star state increased about 4% year over year in August, lower than the national average.

Texas operates its own grid, ERCOT, with a relatively fast process that can connect new electric supply to the grid in around three years, according to a February 2024 report from the Brattle Group.

California, meanwhile, has the third most data centers in the nation and the second highest residential electricity prices, nearly 80% above the national average. But prices in the Golden State increased about 1% in August 2024 over the prior year period, far below the average hike nationwide.

One of the reasons California’s electricity rates are so much higher than most of the country is the costs associated with preventing wildfires. PG&E, the largest utility in the state, said in March that it expects rates to remain stable this year as costs associated with wildfire prevention are taken out of customers’ bills.

Environment

Podcast: Apple CarPlay in Tesla cars, VW on Superchargers, Toyota electric pickup, and more

Published

27 mins ago

November 14, 2025

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Podcast: Apple CarPlay in Tesla cars, VW on Superchargers, Toyota electric pickup, and more

In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Apple CarPlay possibly coming to Tesla cars, VW getting access to Superchargers, a Toyota electric pickup, and more.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:

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Environment

October EV sales slid, but deals and rebates are still in play

Published

37 mins ago

November 14, 2025

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October EV sales slid, but deals and rebates are still in play

October EV sales — 2025 Hyundai IONIQ 5 at a Tesla Supercharger (Source: Hyundai)

US EV sales declined in October following the expiration of the $7,500 federal tax credit on September 30, and the average transaction price (ATP) edged up, according to initial estimates from Kelley Blue Book, a Cox Automotive brand. However, there are still deals to be had.

Kelley Blue Book’s initial estimates show that US EV sales fell to 74,835 in October, down 48.9% from September, which was a record month, and 30.3% year-over-year.

Prices also ticked up. The average transaction price (ATP) for a new EV climbed 1.6% month-over-month to $59,125, which is 2.3% higher than a year ago.

Tesla didn’t escape the downturn, but it held up better than the overall EV market. The company’s ATP fell 1.1% from September to $53,526, and its prices are 5.5% lower than they were in October 2024. Sales of the Model 3 and Model Y both declined month-over-month, and overall Tesla sales decreased by 35.3% from September and 23.6% year-over-year, which are smaller declines compared to the broader EV segment.

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Cox Automotive senior analyst Stephanie Valdez Streaty said the shift wasn’t surprising:

We expected this shift in the electric vehicle market. With the IRA-backed sales incentives gone, lower-cost EV volume was hit hard, pushing the mix toward more luxury and driving October’s EV ATP to a 2025 high of $59,125 – now $9,359 above the industry average. Affordability has always been the core challenge with EV sales, and this reset only underscores how critical it is to bring more attainable EV options to market.

Electrek’s Take

September was a record-breaking month for both EV deals and sales. Dealers were offering all sorts of sweet incentives to stack with the federal tax credit to move cars off the lot. October’s sales drop was entirely anticipated, like a pounding headache after a big blowout party.

We didn’t know what the post-federal tax credit EV market would look like. As Valdez Streaty rightly states, EVs do have a higher ATP than the industry average. But it turns out that, so far, it’s not all doom and gloom, and the federal tax credit isn’t the only incentive in town.

Every month, I compile great EV lease deals, and for the last few months, some EVs’ monthly lease payments have been cheaper than before the federal tax credit expired. Many states are still offering rebates on EV purchases, and dealers still have really good deals. While cheaper models would definitely be welcome, there are good deals available right now.

And let’s not forget the fact that EVs are much cheaper to drive than gas cars, with or without that tax credit.

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Environment

DFW deploys SIX new Striker Volterra Electric ARFF 6×6 fire trucks

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1 hour ago

November 14, 2025

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DFW deploys SIX new Striker Volterra Electric ARFF 6x6 fire trucks

Dallas Fort Worth International Airport Welcomes Six New Striker Volterra Electric ARFF Vehicles Into Service

The Oshkosh-built Striker Volterra Electric Aircraft Rescue and Fire Fighter (ARFF) packs advanced battery technology to deliver ultra-fast emergency response performance no matter how long it needs to be in action — and Dallas Fort Worth International Airport just put six of the awesome 6×6 machines to work!

Oshkosh has been manufacturing ARFF vehicles since it first launched the MB-5 for use by the US Navy back in 1968, and they’ve been pushing the envelope of disaster response performance ever since. The company’s latest ARFF, the Striker Volterra Electric shown here, features a slanted body with front bumper designed for maneuvering through the ditches and rough terrain they might encounter on a damaged runway. It’s also big — but it’s big for a purpose. Because ARFF vehicles don’t have to navigate the confines of city streets, they can be built bigger, carry more water, more rescue equipment, and more personnel than conventional fire trucks.

As the newest members of the DFW Fire-Rescue fleet, these Striker Volterra Electric ARFF vehicles represent a significant step in DFW’s broader plan to replace its legacy fleet with a modern, electrified response system, while also making DFW the largest Striker Volterra Electric ARFF fleet operator in the US.

“Enhancing performance by reducing response times is the key driver of transitioning to these new vehicles,” said Daniel White, DFW Fire-Rescue Chief. “The Striker Volterra vehicles are faster and more agile than our current fleet. Because they are also safe for our firefighters and conscious for the environment, this investment represents a rare win-win-win, delivering operational benefits while ensuring the safety of our responders and the community we serve.”

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The Striker Volterra Electric 6×6 ARFF uses a proprietary Oshkosh electric powertrain and an electro-mechanical infinitely variable transmission (read: CVT) paired to an integrated diesel generator. The setup enables zero-emission electric operation during normal station entry, standby, and low-speed tasks, eliminating firefighter exposure to their ARFF’s diesel exhaust 99% of the time. For sustained high-power demands during active fire suppression, the system seamlessly draws from both the battery and generator, ensuring uninterrupted pumping power and performance without operator intervention.

“Our commitment goes far beyond delivering a vehicle,” said Travis Ownby, sales specialist with Siddons-Martin Emergency Group. “It’s about helping departments like DFW Fire-Rescue lead the way in operational excellence and sustainability. We’re proud to support their mission with the Striker Volterra Electric ARFF vehicles.”

The addition of the Striker Volterra Electric ARFF vehicles also supports DFW’s transition to fluorine-free firefighting foam in line with FAA guidance and the industry’s move away from PFAS-based agents for a more environmentally responsible response capability across the airport.

Electrek’s Take

With the relatively short distances driven and extreme loads involved, airports present a nearly ideal use case for battery-electric vehicles in general, and their immediate off-the-line torque, improved efficiency, and ability to operate much more quietly than diesels (facilitating emergency crews’ communications) could make all the difference in an emergency situation where lives are quite literally on the line.

Plus, as demand for on-road fossil fuels drops, airports and airlines (historically responsible for about 4% Earth’s global warming) are becoming a bigger and bigger slice of a rapidly shrinking pie when it comes to fossil fuel emissions. Or, as OshKosk put it, “As airports continue to prioritize sustainability and operational efficiency, the Striker Volterra electric ARFF stands out as a forward-thinking solution that meets today’s demands while preparing for tomorrow’s challenges.”

It’s a bit pitchy, but I couldn’t agree more.

SOURCE | IMAGES: Oshkosh.

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