Short answer: it depends on your utility’s rules. In Illinois, ComEd says connecting 30 data centers will cost $3.1 billion, and consumer groups warn up to $2 billion of that could land on regular bills. Utilities with strict “large load” rules, like Evergy in Kansas and Missouri, make data centers pay for what is built for them, which lowers the risk for households.
Key takeaways
- ComEd records show $3.1 billion in grid upgrades to connect 30 data centers in Illinois by 2031. Developers have paid $721 million in deposits so far.
- Consumer and environmental groups say the gap could reach $2 billion spread across households. ComEd says deposits may grow and other safeguards cover much of the cost.
- Evergy told customers on October 26 that data centers will not raise their rates, because its approved rules make big users pay for their own infrastructure and post collateral.
- President Trump posted that big data centers must “make their own electricity,” but as of October 22 no formal order had been issued.
- Power bills are rising anyway. The U.S. Energy Information Administration expects the average home price to reach 18.2 cents per kilowatthour in 2026, up from 17.3 cents in 2025.
How much does it cost to connect data centers to the grid?
What happened: On October 26, Capitol News Illinois reported that ComEd, the utility serving Chicago and northern Illinois, filed records with state regulators showing it will need $3.1 billion in new equipment and system upgrades to connect 30 data centers. Some are already hooked up. The rest are expected by 2031.
Transmission, the high voltage lines that move power long distances, makes up $1.6 billion of the total. Several single projects top $100 million, including one at $289 million and another at $269 million. Developers have paid $721 million in advance deposits, just under 25% of the total.
| ComEd data center hookups | Figure |
|---|---|
| Data centers in the filing | 30 |
| Total upgrade cost | $3.1 billion |
| Transmission share | $1.6 billion |
| Deposits paid by developers | $721 million |
| Transmission costs backed by 10 year credit lines | $1.1 billion |
| Projects that predate the credit line rule | 19 of 30 |
| Gap consumer groups say could hit regular bills | Up to $2 billion |
Who pays if a data center does not cover its costs?
This is the heart of the fight. The Citizens Utility Board (CUB), Illinois’ consumer watchdog, and the Environmental Law and Policy Center argue that the difference between what developers have paid and what the grid work costs could be spread across ordinary customers. “Ordinary households should not foot the bill to provide power to data centers,” said Nick Wallace, an attorney with the Environmental Law and Policy Center. CUB general counsel Eric DeBellis put it this way: “We don’t want to pay for grid bridges to nowhere.”
ComEd disagrees with that math. Max Leichtman, its director of economic and workforce development, said only the local distribution costs should be compared with the deposits. On the deposits, he said, “That doesn’t mean that’s all we’ll ever collect.” He said deposits can rise as projects mature, and leftover distribution costs would be spread among other large customers, not all households.
ComEd also points to transmission security agreements. These are long contracts that require a 10 year line of credit, so the data center keeps paying for transmission even if the project falls through. Regulators approved that rule in 2025. It protects $1.1 billion of the $1.6 billion in transmission costs. The catch: 19 of the 30 projects came before the rule.
Why it matters: Data center requests are often speculative. Some developers file duplicate requests with several utilities, and local opposition has led many projects to be withdrawn. If a utility spends $289 million on upgrades for a project that never opens, someone still has to pay for it. That is the “bridge to nowhere” risk.
How are other states protecting power bills from data centers?
Many utilities now have a “large load tariff.” A tariff is the official rate rulebook a utility files with regulators. A large load tariff sets special terms for very big users. Evergy, which serves Kansas and Missouri, emailed customers on October 26 saying these rules protect them. KCTV5 checked the details against regulatory filings.
| Protection | ComEd (Illinois) | Evergy (Kansas, Missouri) |
|---|---|---|
| Who it covers | Large load customers, including data centers | Any customer over 75 megawatts |
| Pays for its own infrastructure | Partly, through deposits and direct cost assignment | 100% of infrastructure built only to serve it |
| Collateral | 10 year credit line for transmission (newer projects) | Two years of minimum bills |
| Contract length | 10 years for transmission agreements | At least 12 years, up to 17 with phase in |
| Minimum monthly bill | Not described in reporting | Yes |
Kansas regulators approved Evergy’s plan in a unanimous settlement in November 2025. Missouri lawmakers passed a law in 2025 requiring that large users pay their share without shifting costs to homes and small businesses. Kansas regulatory staff testified that big users will pay 7% to 10% more than Evergy’s existing industrial customers. “These rates were established to ensure that our current customers are protected while data centers pay their fair share,” an Evergy spokesperson said.
One important gap: these rules only apply to investor owned utilities. City run utilities and electric co-ops fall outside state commission authority. KCTV5 noted that the Nebius data center in Independence, Missouri, which will need more than 800 megawatts, is served by the city utility, not Evergy.
Congress is also weighing in. The bipartisan American Affordability and Jobs Act of 2026, co-authored by Sen. Mike Lee, includes a “Pay Your Own Way” rule that would bar shifting data center grid costs to households, according to the Deseret News. It still needs Senate committee votes.
Did Trump order data centers to make their own power?
Not formally. On October 21, the President posted on Truth Social that large new data centers are “mandated by me to make their own electricity,” as quoted by Fox News and CNBC and reported by the Northeast Times. As of October 22, no executive order or other formal action had appeared. The post named no size threshold or enforcement method. An earlier White House effort, the March 2026 Ratepayer Protection Pledge, is voluntary.
Meanwhile, on October 9, federal regulators at FERC rejected most of the PJM grid operator’s plan for connecting large users, saying parts of it intruded on state authority. Analysts at Jefferies said the ruling could keep PJM capacity prices higher for longer. PJM serves more than 67 million people across 13 states and Washington, D.C.
The other side
Data centers are not the only reason bills are rising. EIA notes that residential prices include transmission and distribution upgrades, not just the cost of power itself. A University of Southern California researcher, Shon Hiatt, told Utah lawmakers in August that he found no effect on power prices from data centers entering territories served by investor owned utilities from 2020 to 2025, the Deseret News reported.
Rules also seem to work. Leichtman said the Illinois credit line rule caused “substantial attrition” in ComEd’s queue, meaning speculative requests dropped out. In 2025, Bisnow reported that AEP Ohio’s queue fell by more than half after similar rules, and that developers were willing to pay more to get power faster. And in theory, a big customer that pays its full share can spread fixed grid costs across more users.
| U.S. average residential electricity price | Cents per kilowatthour |
|---|---|
| 2024 | 16.5 |
| 2025 | 17.3 |
| 2026 (forecast) | 18.2 |
| 2027 (forecast) | 18.7 |
The TrustNoRobot Risk Check
| Question | Our read on data centers and power bills |
|---|---|
| Exposure | Highest for households served by utilities with many data center requests and weak or new large load rules. Lower where big users must pay for their own hookups. |
| Evidence | Mixed. The ComEd cost numbers are in regulatory filings. How much reaches household bills is still disputed and not yet decided. |
| Speed | Slow to medium. Upgrade costs show up through rate cases over years, and ComEd’s projects run through 2031. |
| Cushion | State tariffs, collateral rules and pending federal bills. Co-op and city utility customers may have less protection. |
What this means for you
You can check your own risk in about 15 minutes. First, find out who your utility is and whether it is investor owned, a co-op or city run. Second, search your state utility commission’s website for “large load tariff” and your utility’s name. Third, look for three things: does the data center pay 100% of infrastructure built for it, does it post collateral, and does it owe a minimum bill even if it uses less power? If the answer to all three is yes, your risk is lower.
If a data center is proposed near you, ask local officials those same questions before votes on tax breaks. For the bigger picture on energy and water use, read our guide to how much electricity and water AI data centers use, our look at data center moratoriums and your power bill, and what Texas found on data center water use. Curious how AI affects your work, too? Try the Job Exposure Explorer.
Frequently asked questions
Do data centers raise residential electricity bills?
They can, if utilities build grid upgrades for them and spread the cost to all customers. Where large load rules make data centers pay for their own infrastructure and post collateral, the risk to households is lower.
How much will ComEd spend to connect data centers?
About $3.1 billion to connect 30 data centers by 2031, according to ComEd filings reported by Capitol News Illinois. Developers have paid $721 million in deposits so far.
What is a large load tariff?
It is a set of utility rate rules for very large customers, such as data centers. It often requires them to pay for their own hookups, sign long contracts, pay minimum bills and post collateral.
Are data centers required to make their own electricity?
Not by law. President Trump posted on October 21 that they are, but no executive order had been issued as of October 22. Pennsylvania Gov. Josh Shapiro has also said he wants data centers to generate their own power.
Sources
- Capitol News Illinois, “It’s projected to cost ComEd $3.1B to connect data centers to the grid” (Oct. 26, 2026)
- KCTV5, “Evergy says data centers won’t raise your rates. Here’s how that works” (Oct. 26, 2026)
- Northeast Times, “Trump Says Big Data Centers Must Make Their Own Electricity. What That Means for Pennsylvania Power Bills” (Oct. 23, 2026)
- Deseret News, “This bill would make data centers pay their own way for power” (Oct. 22, 2026)
- U.S. Energy Information Administration, “Short-Term Energy Outlook: Electricity, coal, and renewables” (Oct. 6, 2026)
- Bisnow, “As States Make Data Centers Pay More For Power, Developers Prove Willing To Ante Up” (Nov. 26, 2025)
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