Energy demands in the U.S. are near historic highs, and prices are slated to soar in many regions. Data centers that power artificial technology (AI) technology are a large contributor to the demand for energy, adding to a complicated web of factors behind this surging trend for power across the country.

While facilities managers don’t need to understand all the nuances of why their energy bills may spike soon, there are a few aspects of the issue to keep in mind as FMs prepare for the harsh industry headwinds.

Challenges to the National Electricity Landscape

Increased Demand—Especially from Data Centers 

According to the American Public Power Association, the commercial industry’s electricity consumption in the U.S. is predicted to increase by 2% annually in 2025 and 2026 after nearly two decades of little change.

The association said that these increasing demands on electricity are driven mainly by the large consumption of energy by data centers. Data centers house servers that store and process the electronic aspects of running a business—from financial transactions to sending an email—and now fuel AI technology.

An analysis by consulting firm Bain & Co. said that data centers alone could account for 44% of new electricity demand growth in the U.S. between 2023 and 2028.

Caps in Supply Drive Up Prices

In June 2025, 13 states and Washington, D.C., will pay record-high prices for their overall energy costs as PJM Interconnection attempts to overhaul its capacity to meet future electric grid demands. Diversegy, an energy brokerage firm, estimates that commercial customers of PJM may see between 20-30% increases in their electric bills. Elsewhere, the Midcontinent Independent System Operator (MISO) has worked to tackle its capacity issues by capping the number of new projects that request connection to its power grid.

Bottlenecked Transitions to Non-Renewable Power Sources

Heather O’Neill, president and CEO of Advanced Energy United, told Utility Dive that as more data centers are approved for construction nationwide, existing renewable energy sources are “stymied” by siting and interconnection bottlenecks.

Fossil fuel sources are meeting the remainder of surging power demands—enough to delay the decommissioning of coal plants. Liquefied natural gas sources may also increase in price with the recent freeze on U.S. export permits.

Solutions for Facilities Managers

Christine Devine, client relationship manager at MD Energy Advisors, told Facilities Management Advisor that these compounding electricity challenges should spur reflection by FMs.

“Now more than ever, it makes sense for consumers to look at managing down their electric usage. This could mean the use of renewable energy, backup generation, or exploring energy efficiency options for their homes or businesses,” Devine said.

Jared Lyles, an energy engineer with MD Energy Advisors, recommended that facilities managers look closely at their energy capacity and overall energy usage as they strategize the next steps. He explained that there are “two different sides of the energy cost coin.” One is energy capacity, which measures the maximum amount of energy your facility uses at a specific time in kilowatts (kW). The other is overall energy usage, which measures the amount of electricity a building uses over a set period of time, such as your monthly billing cycle, in kilowatt-hours (kWh).

“Lowering either, or preferably both, can have a big impact on your electric bill without sacrificing performance,” Lyles said.

MD Energy Advisors suggests that facilities managers who want to reduce their electricity usage or bills significantly should combine behavioral changes with capital improvements. Facilities managers can take the following actions, according to MD Energy Advisors and Diversegy.

• Create a culture of energy consciousness: Encourage employees to turn off lights, equipment, and computers when not in use. This reduces kWh usage and can indirectly lower capacity charges by reducing peak demand.
• Utilize off-peak hours: When possible, shift high energy usage activities and processes to off-peak hours to lower capacity charges.
• Use building management systems (BMS): BMS, including sensors, can automatically adjust lighting and HVAC levels based on real-time occupancy to avoid unnecessary energy consumption in unoccupied areas, especially during peak hours.
• Enter into a power purchase agreement (PPA): PPAs with third-party energy providers offer businesses stable and low-cost electricity in exchange for the provider’s use of the customer’s facility to install, own, and operate an energy system on its location. These PPAs can be applied to renewable energy or other sources.
• Invest in solar energy to offset electric demand: Combined with the use of battery energy storage systems, businesses can avoid or lower capacity costs by relying on stored energy during peak demand periods.
• Apply for energy efficiency subsidies from your state or local utility provider.

Whatever you do to reduce your electricity consumption now, you’ll be setting up your facility for more reliable and affordable energy in the coming months as overall demands on the power grid increase across the country.

Ali Hickerson is a freelance journalist, content writer, and strategist based in Brooklyn, N.Y. Outside of Facilities Management Advisor, Ali’s recent bylines on health and workplace issues have crisscrossed the country and helped advocate for programs and policies that work to create a healthier, more humane, and equitable world.

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