Senate Democrats Press Big Tech on the Cost of AI’s Soaring Energy Demands

A Congressional Inquiry 

A trio of Senate Democrats are putting major tech companies under the microscope, as the rapid expansion of artificial intelligence drives data center construction and energy usage.

Sens. Richard Blumenthal (D-Conn,) Elizabeth Warren of (D-Mass.), and Chris Van Hollen (D-Maryland) sent letters to major tech companies and data center operators, asking for information about these companies’ data center electricity consumption, impact on consumer utility costs, and growth plans.

The Senators allege in the letters that data center energy usage is driving up consumer power bills. The federal Energy Information Administration reports that the average American’s electricity bill increased by seven percent between September 2024 and September 2025. 

“Through these utility price increases, American families bankroll the electricity costs of trillion-dollar tech companies,” the senators write. “To protect consumers, data centers must pay a greater share of the costs upfront for future energy usage and updates to the electrical grid provided specifically to accommodate data centers’ energy needs.”

The Politics of Data Centers

Democrats see electricity prices as a winning issue for their party as they fine tune their message for the national election in 2026.

According to the Pew Research Center, data centers currently account for more than four percent of the nation’s annual electricity consumption, or 183 terawatt-hours (TWh).

That is expected to grow by 133 percent to 426 TWh by 2030, an indication of how fast AI usage is growing. A standard AI hyperscale data center consumes as much electricity as 100,000 homes, and massive data centers currently under construction will use as much as 2,000,000 households.

But the national numbers only tell part of the story. Data centers tend to be geographically focused, so their rapid expansion can strain local power grids. In states such as Virginia (26 percent), North Dakota (15 percent), Nebraska (12 percent), Iowa and Oregon (11 percent each), data center power consumption far exceeds the national average.

At the same time, these data centers fuel major economic activity through construction spending, high paying jobs, generating significant tax revenue for governments and by enabling digital services across industries.  Individual consumers and companies alike increasingly are turning to AI to solve problems, increase efficiencies, and perform necessary work. A Stanford University report found that 78 percent of U.S. businesses used AI in 2024—a significant increase from 55 percent the previous year. 

What Companies Should Do 

While Senators in the minority party cannot compel the letter’s recipients to turn over the requested information and documentation, they can apply reputational pressure to encourage recipients to respond. Only the Chairperson of a Committee with relevant jurisdiction can issue a subpoena to compel a response.

However, that is not to suggest that the inquiry can be ignored as it is highly likely that this issue will increasingly be a topic in local and national campaigns as we begin a high stakes election year. 

Moreover, should control of Congress change hands, Democrats would be in a strong position in to delve into the questions raised in the letters. 

For more information on how to navigate Congressional Inquiry, please see related article: Congressional Investigations: What Business Leaders Need to Know Now.