Your Electric Bill Is Higher Because of Data Centers

Data centers require enormous amounts of electricity to operate 24/7. According to our new report, “Data Centers, Ohio’s Electric Grid, and Your Power Bill,” the average Ohio family will face approximately $70 in additional monthly electric charges due to increased data center demand.

When electricity demand increases rapidly, utility companies invest in new infrastructure like transmission lines and substations to deliver power reliably. These costs are passed on via higher rates charged to all customers.

But data centers are consuming electricity faster than the grid's supply can keep up. When there isn’t enough power to go around, prices increase for everyone, not just the companies using the power.

Ohio's Contradictory Approach: A Band-Aid and a Gas Pedal

In 2025, Ohio implemented the '85-percent rule' requiring data centers to pay for 85% of reserved electricity capacity. It prevents one type of cost-shifting. But it's a band-aid solution—it does nothing to address the core problem: too much demand chasing too little supply. Electricity prices still rise for everyone. Meanwhile, Ohio simultaneously provides data centers with a $140 million-and-growing annual sales-tax exemption, encouraging more facilities to build and connect to the grid.

This creates a fundamental contradiction: Ohio is putting a band-aid on one problem (infrastructure cost-shifting) while actively accelerating the larger problem (demand outpacing supply).

Making matters worse, Ohio's legislature voted to eliminate the tax exemption, understanding that it encourages data center growth without delivering significant job creation. Governor DeWine vetoed the effort, and despite the clear legislative intent, the tax break remains in effect.

What Other States Are Doing Differently

Several states have implemented stronger protections for their residents:

• Connecticut is requiring data centers to generate their own power through onsite facilities

• Georgia requires data centers to pay for all infrastructure costs and bans utilities from shifting expenses to residents

• In Texas, data centers are building their own power plants, with 42 natural gas turbine projects under development to serve the industry

Should Ohio residents pay to expand data centers that make big profits for out-of-state companies while giving little back to Ohio communities?

Ohio policymakers have the power to help Ohio families: they could mandate that data centers construct their own power infrastructure, eliminate ineffective tax subsidies, or strengthen regulations to prevent cost-shifting to residents. Other states are already doing this. Ohio can too.

For a complete analysis of data center policies, impact projections, and detailed policy recommendations from other states,read the full report.