Episode Overview

Title: What Are AI Data Centers Doing To Your Electric Bill?
Podcast: Short Wave (NPR)
Date: December 3, 2025
Hosts: Emily Kwong, joined by reporter Dan Charles
Expert Guest: Mike Jacobs, Union of Concerned Scientists

This episode explores how the rapid growth of Artificial Intelligence (AI) data centers across the U.S. is driving up electricity demand—and examines who bears the cost of powering them. Through vivid reporting from “Data Center Alley” in Virginia and interviews with grid specialists, the hosts unpack a quietly unfolding policy debate: Should ordinary utility customers subsidize the infrastructure needed by big tech, or should data centers foot the bill themselves?

Key Discussion Points & Insights

1. Setting the Stage: Data Centers’ Rising Energy Appetite

• [02:00–02:44]
  Dan Charles visits “Data Center Alley” in Loudoun County, VA, painting a picture of massive, seemingly empty buildings fed by rows of enormous power lines—“rivers and rivers of electricity.”

  • "There is not a person in sight but I'm seeing these enormous enormous buildings... along the road, these enormous power lines... so much electricity flowing into this place, like rivers and rivers of electricity.” — Dan Charles (02:20)

• [02:50–03:07]
  Hosts cite a recent analysis projecting U.S. utility bills could rise 8% generally—and up to 25% in Virginia—by 2030 due to data centers and crypto mining.

2. The Grid Geek’s Revelation: Who Pays?

• [03:18–03:50]
  Mike Jacobs of the Union of Concerned Scientists describes how utilities build new power lines for data centers—and these extra costs are absorbed by regular electricity customers, not data center companies.

  • “The data centers themselves don’t have to pay extra to get connected... guess who’s really paying the bill for this?” — Dan Charles (04:10)
  • “All the consumers of Virginia are subsidizing the business plans of these data center companies, which I would say is morally wrong and bad policy.” — Mike Jacobs (12:11)

• [04:08–04:35]
  Mike is outraged regular customers foot the bill for infrastructure serving lucrative tech businesses:

  • “I saw a bunch of [new transmission lines] being built to supply data centers and... the data centers were getting these connections pretty much for free... It just gets your hackles up.” — Mike Jacobs (04:35)

3. Massive Investment—and Growing Policy Tensions

• [07:08–08:16]
  Digging into utility filings, Mike finds Dominion Energy (serving most of Virginia) plans dozens of new data center hookups; other Mid-Atlantic utilities are similarly engaged.

  • “In this one document from 2024, a couple of dozen projects just in Virginia... One-hundred-thirty projects for data centers, costing in total over $4 billion.” — Dan Charles (07:54)

• [08:34–09:44]
  Dan reports from Fairfax, VA, at the site of a future data center—a space the size of 8 football fields. New power lines and substations for this single data center are expected to cost $40 million.

4. Utilities’ Viewpoint: Is This Good for Everyone?

• [09:54–10:31]
  Dominion Energy spokespersons argue new power lines built for data centers also make the grid stronger and more reliable for all customers:
  • “It’s not just the data centers—it's our hospitals, your schools, your churches, residents... But the data center is largely driving the need for this project.” — Dominion Energy representatives (09:54–10:04)

5. How Costs Get Passed On: The Regulated Monopoly Model

• [10:38–11:20]
  Utilities like Dominion are regulated monopolies. When they make infrastructure investments, rates go up so they can recover those costs and keep a profit.

  • “So when Dominion spends more money building new power lines for data centers, that extra cost translates directly into a little boost in the rates that everybody pays.” — Dan Charles (11:14)

• [11:25–12:11]
  Quantifying the impact is tricky and regional, but evidence suggests household bills may rise by at least several dollars a month in areas dense with new data centers.

6. Disparities in Who Pays: Data Centers vs. Renewables

• [12:23–13:23]
  Mike highlights a glaring discrepancy:
  • Renewable projects (solar/wind farms) must pay upfront for new grid connections.
  • Data centers don’t; their connection costs are spread across all ratepayers.
    • “If you are a solar or wind farm generating electricity, you have to pay for the power lines... If you are consuming electricity... you don’t have to pay for that upgrade—instead, everybody gets a rate increase tacked onto their bill.” — Emily Kwong (13:04)

7. Momentum for Change: Policy Proposals and Pushback

• [13:35–14:11]
  The rules could change. The Trump administration—despite vocal support for AI—has called for a federal rule requiring data centers to cover their own grid connection costs, though it’s unclear if such a rule will override state regulatory authority.
  • “Just a few weeks ago the Trump administration actually called for a new federal rule that would require new data centers to pay the costs involved in connecting them to the grid.” — Dan Charles (13:53)
  • “They’re asking for the right thing, so we got a nice little fight unfolding over this very problem.” — Mike Jacobs (14:11)

Memorable Quotes & Moments

• “There is no such thing as a free power line.” — Dan Charles paraphrasing an economist (04:10)
• “This isn’t right... All the consumers of Virginia are subsidizing the business plans of these data center companies, which I would say is morally wrong and bad policy.” — Mike Jacobs (12:11)
• “If you are a solar or wind farm generating electricity, you have to pay for the power lines... but if you are consuming electricity, like you’re a customer, a big data center, you don’t have to pay.” — Emily Kwong (13:04)
• Regarding new policy: “It was kind of a shock because the Trump administration has been very enthusiastic about AI... They’re asking for the right thing, so we got a nice little fight unfolding over this very problem.” — Dan Charles & Mike Jacobs (14:11)

Timeline of Key Segments

| Timestamp | Segment Description | |------------|---------------------------------------------------------------| | 02:00–02:44| Arrival at “Data Center Alley” in VA; energy demands described| | 02:50–03:07| National predictions for rising electric bills | | 03:18–04:35| Grid geek Mike Jacobs describes hidden costs and inequity | | 07:08–08:16| $4 billion in planned investments to serve new data centers | | 08:34–09:44| Field reporting from future data center site in Fairfax, VA | | 09:54–10:31| Dominion: new lines benefit all, not just data centers | | 10:38–11:20| Utilities as monopolies—costs and profits explained | | 12:11–13:23| Renewables vs. data centers: who pays connection costs? | | 13:35–14:11| Trump administration pushes for data centers to pay their share| | 14:11–14:24| Forecast of upcoming policy and regulatory fights |

Conclusion & Further Resources

Dan Charles reports that the fight over who pays for the AI revolution’s electricity infrastructure is only just beginning—policy, fairness, and big money are all at stake.
Emily points listeners to earlier Short Wave episodes on the environmental impact of data centers (see show notes).

Produced by: Burley McCoy
Edited by: Rebecca Ramirez
Fact-checked by: Tyler Jones
Audio Engineering: Jimmy Keeley
Senior Vice President of Podcasting: Beth Donovan

This summary omits fundraising appeals and sponsor messages to focus on the episode’s content.