Maryland faces rising utility costs due to data center growth

The rapid expansion of artificial intelligence and data centers is placing significant pressure on Maryland’s infrastructure, energy systems, and utility costs. Data centers require massive amounts of electricity and water for cooling, with single facilities capable of consuming up to 5 million gallons of water per day.

In Maryland, residents—particularly in rural and suburban areas served by approximately 26 private water companies—are facing soaring water bills. Some residents in Western Maryland have reportedly resorted to rationing showers or sourcing water from creeks. These rising costs coincide with an increase in residential electricity prices, driven in part by the high energy demands of the data center industry.

State leaders and utility experts recently met at the MACo Summer Conference to discuss the economic and infrastructural trade-offs of this growth. Discussions focused on how rising electricity demand affects grid capacity, land use, and long-term economic development. Officials from the Maryland Energy Administration, PJM, and the Maryland Office of People’s Counsel addressed the need to balance reliable power supply and infrastructure investment with the protection of residential ratepayers.