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Maryland citizens hit with $2B power grid upgrade for out-of-state AI

Maryland citizens slapped with $2 billion power grid upgrade bill for out-of-state AI data centers — state complains to federal energy regulators, says additional cost breaks ‘ratepayer protection pledge’ promises

tomshardware.com

May 10, 2026

5 min read

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63/100

Summary

Maryland citizens face a $2 billion bill for power grid upgrades attributed to out-of-state AI data centers. The Maryland Office of People’s Counsel has filed a complaint with the Federal Energy Regulatory Commission against PJM Interconnection's plans to impose these charges.

Key Takeaways

Maryland citizens face a $2 billion bill for power grid upgrades to accommodate out-of-state AI data centers, leading to an estimated additional cost of $1.6 billion over the next ten years for consumers.
The Maryland Office of People’s Counsel has filed a complaint with the Federal Energy Regulatory Commission, arguing that the cost allocation methodology used by PJM Interconnection unfairly burdens Maryland ratepayers.
Maryland officials assert that the costs of infrastructure upgrades should be charged to the areas where data centers are located or directly to the companies operating them, as per the "ratepayer protection pledge."
Approximately 69 jurisdictions have enacted moratoriums on data center projects due to community pushback, with nearly half of Americans opposing the construction of data centers in their neighborhoods.

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Community Sentiment

Negative

Positives

The investment in infrastructure, including power grid upgrades, could ultimately support the growing demand for AI data centers, enhancing technological capabilities in the region.

Concerns

Citizens express frustration that the costs of grid upgrades are being passed directly to them without clear benefits, particularly when the upgrades primarily serve out-of-state AI operations.
There is skepticism about whether the infrastructure spending is truly aimed at improving local lives, as many feel it disproportionately benefits wealthy AI companies.