Data Centers Struggle to Pay Their 'Fair Share' as Electricity Costs Rise

Politicians and consumers demand tech companies foot the bill for energy-hungry AI operations

Published on Feb. 13, 2026

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As outrage grows over the energy demands of data centers, politicians from both parties are insisting that tech companies, not regular people, must pay for the exorbitant electricity required to power artificial intelligence. However, there is little consensus on what a 'fair share' means, and efforts to address the challenge may be coming too late as energy costs continue to rise.

Why it matters

The high electricity costs of data centers have become intertwined with broader concerns over the cost of living, a dominant issue in upcoming elections. Voters are increasingly connecting their own rising electricity bills to the presence of these energy-hungry facilities, putting pressure on governments to ensure tech companies pay their fair share.

The details

Data centers are sprouting across the U.S. as tech giants scramble to meet demand for AI products that require large amounts of computing power. The buildings can need more power than a small city, setting off a race to build more power plants. This increased electricity demand can raise prices for all ratepayers, as utilities build more infrastructure to serve the data centers. Some states and utilities have started requiring tech companies to pay for the power plants and upgrades they need, but analysts say this may not be enough to fix the short-term problem of ravenous demand outpacing power plant construction.

  • In November 2025, Democrats ousted two Republicans from Georgia's utility regulatory commission, in part due to anger over data center electricity costs.
  • In early 2026, energy costs are projected to continue rising.

The players

President Donald Trump

The former U.S. president who has embraced artificial intelligence as a top economic and national security priority, though he has also acknowledged the backlash over data centers' electricity demands.

Chris Wright

The former U.S. Energy Secretary under the Trump administration, who has disputed claims that data centers inflate electricity bills.

Laura Swett

The chair of the Federal Energy Regulatory Commission (FERC), who believes data center operators are willing to cover their costs and understand the importance of community support.

Greg Landsman

A Democratic U.S. Representative from Ohio, who says data center projects in his district are getting tax breaks, sidestepping community opposition, and costing people money.

Katie Hobbs

The Democratic governor of Arizona, who wants to impose a penny-a-gallon water fee on data centers and eliminate their sales tax exemption, calling it a '$38 million corporate handout.'

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What they’re saying

“Fair share' is a pretty squishy term, and so it's something that the industry likes to say because 'fair' can mean different things to different people.”

— Ari Peskoe, Director of the Electricity Law Initiative at Harvard University

“What do you do when Big Tech, because of the very profitable nature of these data centers, can simply outbid grandma for power in the short run? That is, I think, going to be the real challenge.”

— Abe Silverman, Former utility regulatory lawyer and energy researcher at Johns Hopkins University

“It's time we make the booming data center industry work for the people of our state, rather than the other way around.”

— Katie Hobbs

“Americans are not paying higher prices because of data centers. There's a perception there, and I get the perception, but it's not actually true.”

— Chris Wright, Former U.S. Energy Secretary

“Ultimately, I think we have to get to a place where they pay everything.”

— Greg Landsman, Democratic U.S. Representative from Ohio

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.