AARP fights to shield older Americans from growing problem

One of the little-advertised problems with artificial intelligence — and our growing dependence on it — is that the data centers required to run AI have a voracious appetite for energy.

These data centers are being built at record speeds in the U.S., especially in the West.

Now, some groups are warning that the costs related to the energy and water demands of these centers are being passed to consumers, who may not realize they are subsidizing big technology in the form of higher utility bills.

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For example, in June 2025, New Jersey residents were warned by their state's public utilities board that electricity bills could surge by 20%.

The culprit? Increased demand, partly from data centers, according to energy company Sprague. Residents in Ohio, Pennsylvania, and Maryland were warned to expect similar rate hikes.

Older adults, many of whom are on fixed incomes or depend on Social Security, are especially vulnerable to higher utility bills and may ultimately be forced to choose between paying for heat and air conditioning or food and medicine.

The AARP is working to protect older Americans from rising costs.

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AARP stepping in to protect vulnerable Americans

The AARP (formerly known as the American Association of Retired Persons) advocates for people age 50 and older on issues ranging from health care to retirement planning and other financial issues.

The group is concerned about how rising energy costs could affect its members and all older Americans.

Between the construction of new power plants needed to maintain or replace outdated infrastructure, and the demands of modern-day technology, AARP estimates residential electricity prices could reach a 12-year high this year.

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Around two-thirds of adults who are 50 and older have reported increases in their utility bills, and even more are worried their bills will continue to climb, according to the AARP Public Policy Institute.

“We are working on this issue around the country,” said AARP Nevada’s Associate State Director of Advocacy and Outreach Jessica Padrón. “Data centers need a lot of power around the clock. They should pay the full costs of serving them so as not to harm reliability or raise rates to existing customers.”

The AARP is urging lawmakers around the country to protect consumers from electricity rate hikes, since even small increases can be hard to manage for people who live on tight budgets.

Some data centers fueling AI can consume as much energy as a city

Thousands of data centers are now in operation around the country, with the largest numbers in Virginia, California, and Texas. The number of centers doubled between 2021 and 2024, according to Environment America.

But that's just the beginning.

In late 2024, the U.S. Department of Energy issued a report saying the “data center load growth” has tripled over the last decade and is expected to double or triple again by 2028.

Some data centers are expected to consume as much energy as entire cities.

“The United States has seen an incredible investment in artificial intelligence and other breakthrough technologies over the last decade and a half, and this industrial renaissance has created greater demand on our domestic energy supply,” said U.S. Energy Secretary Jennifer M. Granholm in the announcement.

“We can meet this growth with clean energy. Lawrence Berkeley National Laboratory’s report on data center energy usage crucially underscores why the Department of Energy has developed and is deploying technologies to enable continued economic growth across American industries,” Granholm said.

Our reliance on artificial intelligence will only grow, and so will the need for the data centers it depends on.

The question is who will pay for it.

“Utility customers should not have to pay the price when a big data center sets up shop in their area,” said Energy and Utilities Program Director for U.S. PIRG Education Fund Abe Scarr. “Maximizing energy efficiency, generating clean power on-site, and ensuring that data centers pay the full cost of necessary grid upgrades can help reduce the impact on consumers.”