Welcome to The Data Center Brief, a newsletter from the Data Center Alliance of Maryland. 

The Big Takeaway

Electricity prices are rising in Maryland, and residents understandably want reliable power at competitive prices. While data centers require considerable amounts of electricity, recent examples across the U.S. demonstrate that data center growth can actually help lower electricity prices for all customers.  

Shared Costs, Lower Rates

Data centers are "large load" customers, which means they enable utilities to spread fixed infrastructure costs (poles, wires, and substations) across a much larger volume of consumption. This can lower costs for other customers.

National Study: Large Load Customers Can Lower Costs

A 2025 study from the Lawrence Berkeley National Laboratory and the Brattle Group analyzed national electricity prices and found:

• Prices Declined as Load Increased: States with the highest load growth from large customers like data centers saw average electricity prices decline in inflation-adjusted terms from 2019 to 2024.
• Prices Increased as Load Declined: Conversely, states with load reduction or contraction often saw electricity prices rise, as fewer customers were left to shoulder grid costs.

Real-World Examples

• Pacific Gas & Electric cut electric rates by 11% over two years, citing data center growth in its service area as a key driver.
• Indiana & Michigan Power is reducing base electric rates for its customers, citing new revenue and load growth from data centers in its service area.
• A 2024 report noted that Northern Virginia residential electric customers pay 10% below the national average on transmission costs while costs for large load customers increased 9%, ensuring the industry pays its fair share.

Maryland Already Requires Data Centers to Pay Their Fair Share

In 2025, Maryland became the first state in the nation to require data centers to pay their fair share for electricity and grid enhancements. Specifically, The Next Generation Energy Act requires large data centers to pay a special electricity rate designed to finance statewide electric grid improvements.

Data Centers and Energy Efficiency

Data centers have undergone massive improvements in energy efficiency. The U.S. Department of Energy reports that data center Power Usage Effectiveness (PUE) has plummeted from an average of 2.5 in 2007 to approximately 1.5 today, with leading hyperscalers operating as low as 1.1. A rating of “1” is considered maximum efficiency. 

Additional Resources

• Lawrence Berkeley National Lab & Brattle Group Study, October 2025
• Tailored for Scale: Designing Electric Rates and Tariffs for Large Loads, December 2025

What You Can Do

• Forward The Data Center Brief to friends and colleagues and ask them to subscribe
• Learn more about the Data Center Alliance of Maryland at mdtechcouncil.com/data-center-alliance-of-maryland