Portland General Electric raises rates for AI data centers by nearly 30%

Portland General Electric (PGE) received unanimous approval from Oregon’s Public Utilities Commission to increase rates for large electricity users by 29.7%, effective for customers consuming over 20 megawatts. The hike primarily targets AI data centers and cryptocurrency mining operations, while residential customers see a modest 1.3% reduction in their electricity bills.

The new pricing structure stems from classifications added to the Oregon Power Act in April 2025, intended to ensure that high‑consumption facilities bear the true cost of power and infrastructure upgrades, thereby protecting household consumers from broader rate increases. The move follows growing opposition to AI data centers over their substantial electricity and water demands, and it aligns with recent state efforts to balance economic development with utility affordability.

Industry observers note that the rate adjustment could influence the location decisions of future AI and crypto projects, while also setting a precedent for other states considering similar measures.