Opinion - Hold Democrats accountable for high energy prices, not data centers

Many Americans are frustrated by rising living expenses, and Democrats are leveraging this anger to their electoral advantage, often by misrepresenting the facts. While they previously focused on claims like Russiagate or promoting Joe Biden as fully capable of serving another term, they now place the blame for high living costs on the Trump administration. In reality, under Trump, inflation remained under 3%, whereas under Biden, prices have surged more than 20%, driven largely by Democratic spending policies and energy programs.

One of the most impactful contributors to higher costs is the Democratic climate agenda. Policies such as congestion pricing in New York, electric vehicle mandates, and aggressive shifts toward renewable energy have increased expenses. Americans are especially frustrated by soaring electricity bills, which Democrats illogically attribute to the Trump White Houses decisions. They argue that halting parts of Bidens climate initiatives is harming affordable solar and wind projects, and they suggest that the rapid expansion of data centers is inflating utility costs.

While AI growth does raise electricity demand, research from Lawrence Berkeley National Laboratory indicates that data centers can actually help reduce costs by allowing utilities to spread infrastructure expenses across more customers. In fact, Virginia, which hosts more data centers than anywhere else in the world, has not seen a spike in electricity prices.

The real causes of higher electricity prices are policy-driven. Efforts in states like California and New York to electrify transportation, heating, and appliances, combined with restrictive renewable mandates, have pushed residential electricity rates far above the national average. Californias rates are now 77% higher than the U.S. average, reflecting both rising consumption and unrealistic renewable requirements.

Another significant factor is the reduction in fossil fuel use. Policies that restrict natural gas pipeline construction, for instance, have forced residents to rely on costlier energy sources. Even New York Governor Kathy Hochul recently reversed her stance on new pipelines to address the states electricity prices, which are now 48% above the national average.

Historical trends further illustrate the impact of these policies. From 2010 to 2020, Californias electricity prices rose 39%, while the U.S. average increased only 14%. In New York, prices declined modestly until recent Democratic climate measures caused a 44% surge between 2020 and 2025.

High electricity costs in states like California, New York, New Jersey, and Massachusetts are linked to renewable-focused policies, not data centers. Similar patterns are observed in Europe, where aggressive green energy transitions have led to extremely high energy prices. Germanys electricity rates are 42 cents per kWh, compared to 14 cents in the U.S., while the U.K. charges industrial users 34 cents per kWh, far above U.S. levels. These price increases hinder both economic growth and technological competitiveness, including the AI sector.

In contrast, policies that support domestic fossil fuel development help keep energy costs lower. U.S. oil production is at record levels, and natural gas output is also high, helping moderate prices even as Europe faces energy shortages. While data centers increase electricity demand, a balanced energy strategy can accommodate this growth. Maintaining abundant and affordable energy is critical for the U.S. to remain competitive in AI and other technology-driven industries.

Author: Jackson Miller