Researchers at Cornell University have released findings indicating a significant cost disparity in how electricity infrastructure expenses are distributed across U.S. power grids. The study, published this week in Nature Energy, examined energy demand growth and related infrastructure projects across four major power grids from 2020 to 2025.
According to the research, data centers contributed substantially to surging wholesale electricity prices but covered only a portion of the associated costs. Data centers accounted for just 38% of infrastructure expenses linked to their expansion, or $3.12 billion of an $8.25 billion total in 2025. The remaining 62%—approximately $5.13 billion—was distributed to residential consumers, creating a disproportionate burden. Researchers noted that the lowest-income households faced additional energy costs representing up to 28% of their incomes.
The infrastructure investment landscape has shifted dramatically, with transmission spending expanding from $2 billion in 2020 to $34 billion in 2025, with data center growth driving much of this increase. Under current regulated tariff structures, residential users are allocated a median of 47% of costs despite contributing significantly less to demand growth. Rural communities experienced cost increases 76% larger than urban areas, according to the study’s findings.
Researchers attribute the problem to cost allocation methodologies that rely on historical consumption patterns rather than forecasted future demand. This approach creates a situation where households assume infrastructure costs before data centers begin operating. The grid’s interconnected nature across state lines means residents in some states help finance upgrades in other states where data centers are located.
The researchers recommend revising cost-sharing rules and implementing state-level policies requiring data centers to pay fees proportional to their electricity demand. Minnesota has already enacted legislation establishing a special revenue fund financed by data center fees, with revenues designated for utility assistance programs serving low-income households. Growing public concern about these costs surfaced during recent midterm elections, with expectations that state governments and Congress will pursue significant policy changes addressing cost allocation and energy affordability.
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