Voter frustration with soaring electricity bills and the rapid expansion of energy-intensive data centers is emerging as a pivotal issue in the lead-up to the 2026 midterm elections, influencing key races across several states. In recent elections, including gubernatorial contests in New Jersey and Virginia, as well as utility commission seats in Georgia, economic concerns tied to utility costs played a significant role, with voters citing affordability as their top priority.
According to a recent article from ABC News, electricity costs have surged in many areas, outpacing general U.S. inflation, and this trend shows no signs of abating. Gas and electric utilities sought or secured rate increases totaling more than $34 billion in the first three quarters of 2025, more than double the amount from the same period in the previous year, as reported by consumer advocacy group PowerLines.
Charles Hua, founder of PowerLines, described the situation starkly, saying, “it’s a life or death and ‘eat or heat’ type decision that people have to make,” highlighting the struggles of approximately 80 million Americans who are finding it difficult to pay their utility bills. This sentiment was echoed in Georgia, where Democrats ousted two Republican incumbents on the state’s Public Service Commission in this week's elections.
One of the victorious Democrats, Peter Hubbard, accused the Republicans of “rubber-stamping” rate increases by Georgia Power, a subsidiary of Southern Co. Monthly bills for typical residential customers have risen six times over the past two years, now averaging $175, according to the report. Voter Rebecca Mekonnen from the Atlanta suburb of Stone Mountain said she supported the Democratic challengers because she wants “more affordable pricing. That’s the main thing. It’s running my pocket right now.”
Georgia Power is now proposing a $15 billion investment to expand its power generating capacity, mainly to accommodate demand from data centers. Hubbard has raised questions about whether these data centers will bear their fair share of the costs or if regular ratepayers will be left footing the bill. This debate is not isolated to Georgia; similar tensions are brewing in states like California, Michigan, Ohio, Pennsylvania, and Texas, all of which are expected to be congressional battlegrounds in 2026.
Analysts point to a mix of factors driving these rate hikes, including costly grid modernization projects to withstand extreme weather and wildfires, rising natural gas prices, and surging demand from data centers, bitcoin miners, and efforts to boost domestic manufacturing. Jennifer Bosco of the National Consumer Law Center noted, “The cost of utility service is the new ‘cost of eggs’ concern for a lot of consumers.”
Data centers, in particular, are a flashpoint. A typical AI data center consumes as much electricity as 100,000 homes, according to the International Energy Agency, and some facilities could rival the power needs of cities like Pittsburgh, Cleveland, or New Orleans. While states have courted these centers for their economic benefits, there's growing pushback from communities wary of living near them and from ratepayers concerned about subsidizing their grid connections.
In the 13-state mid-Atlantic grid region, spanning from Illinois to New Jersey, ratepayers are already shouldering billions in costs for powering data centers, including those not yet constructed. Next June, bills in that area are set to rise further due to higher wholesale electricity costs aimed at attracting new power plants for data center demand. Governors such as Pennsylvania’s Josh Shapiro, Illinois’ JB Pritzker, and Maryland’s Wes Moore—all Democrats facing reelection—have urged the grid operator PJM Interconnection to curb these increases.
Drew Maloney, CEO of the Edison Electric Institute, a trade group for for-profit utilities, offered a contrasting view, attributing higher bills primarily to Democratic-leaning states. “The red states’ electricity rates are not going up at the rate the blue states are,” Maloney said. “But the data centers are largely going to the red states and the rates are still stable.” He suggested that excluding areas like California, with its wildfire-driven upgrades, and New England, with expensive natural gas, shows electricity rates in much of the country aligning with inflation.
However, the picture is more nuanced. In Republican-led Indiana, a burgeoning data center hub, residential customers of for-profit utilities have faced the steepest rate increases in at least two decades, according to the Citizens Action Coalition. Republican Gov. Mike Braun has publicly decried the hikes, stating, “we can’t take it anymore.”
An Associated Press-NORC Center for Public Affairs Research poll from October revealed that 36% of U.S. adults consider electricity bills a “major” source of stress, though this is less widespread than concerns over grocery costs, which stressed just over half of respondents. Electric rates vary significantly by state and utility type; federal data indicates for-profit utilities have raised rates faster than municipally owned ones or cooperatives.
Political ramifications are already evident. President Donald Trump has indicated he will emphasize affordability in his efforts to help Republicans retain their slim congressional majorities in 2026, while Democrats are pointing fingers at Trump for contributing to household cost increases. Dan Cassino, a professor of politics and government at Fairleigh Dickinson University in New Jersey, observed, “There’s a lot of pressure on politicians to talk about affordability, and electricity prices are right now the most clear example of problems of affordability.”
The issue gained prominence in this week's elections. In Virginia, a data center hotspot, and New Jersey, voters prioritized economic concerns. In New York City and California, similar sentiments prevailed. As winter approaches, some states are warning of delays in low-income heating aid funding due to the ongoing federal government shutdown.
Looking ahead, with midterm campaigns intensifying, experts anticipate that debates over who pays for data center expansions and grid upgrades will dominate in key states. Communities are increasingly vocal, with legislatures and utility commissions fielding proposals to shield regular ratepayers from these costs. The uneven impact—higher in some regions but stable in others—could shape voter turnout and party strategies.
Ultimately, as electricity costs continue to climb amid broader economic pressures, the 2026 midterms may hinge on how effectively candidates address these pocketbook issues. With billions in rate hikes already approved and more on the horizon, the battle over affordability is poised to influence control of Congress and state-level offices alike.