Big Tech’s power grab? NJ families stuck paying electric bills that keep rising

⚡ AI data centers drove 70% of new power demand behind NJ’s 2025 bill spike

💸 Families may be subsidizing Big Tech as energy costs keep climbing

🔌 By 2030, data centers could consume 10% of NJ’s total electricity

A new report from New Jersey Policy Perspective is raising alarms about already rising electric bills.

The culprit? The rapid expansion of AI-powered data centers.

According to the report from the progressive think tank, these massive facilities were the main driver behind the 20% spike in electric bills in June 2025. The demand is expected to grow.

The report calls for major policy changes:

⚡ Making data centers pay more of their own energy costs
⚡ Requiring transparency on energy and water usage
⚡Scaling back tax subsidies for large tech projects

Without stronger rules, New Jersey could face:

⚡ Even higher electric bills
⚡ Greater reliance on fossil fuel plants
⚡ Increased risk of grid strain during extreme weather

SEE ALSO: How NJ households could cut electric costs by 21% in 2026

Why your New Jersey electric bill is going up

Data centers are essentially warehouses packed with high-powered computers. They require enormous amounts of electricity. A single large facility can use as much power as 100,000 homes.

AI data centers made up 70% of new energy demand in a key regional auction. By 2030, they could consume nearly 10% of all electricity in New Jersey

That surge is putting pressure on the regional grid operator, PJM Interconnection, which helps set electricity pricing across the state.

As New Jersey 101.5 has previously reported, that demand spike is already translating into higher supply costs and higher monthly bills for residents.

Big Tech vs. New Jersey ratepayers

The report argues that families and small businesses are effectively subsidizing Big Tech’s expansion with tax incentives and infrastructure support while homeowners, renters and small businesses pay higher utility bills.

pNew Jersey offers up to $500 million in tax credits for AI-related projects, even though the facilities themselves create relatively few long-term jobs. Meanwhile, utilities are upgrading infrastructure to handle demand and those costs can be passed on to ratepayers.

State leaders are already scrambling to respond.

Gov. Mikie Sherrill has moved to freeze some utility rate hikes and push for more in-state energy production. But the report warns those efforts may not be enough if demand continues to surge unchecked.