You know that data centers are scouring America (and the world) for inexpensive power supplies to energize their processors, and it’s become contentious in many neighborhoods where data centers are going in.
The American Legislative Exchange Council (ALEC) has run the numbers, and ranked the states for the most and least expensive electricity costs.
The five states with the cheapest electricity are:
- North Dakota 7.93 Cents/kWh
- Louisiana 8.8 Cents/kWh
- Nebraska 9.07 Cents/kWh
- Oklahoma 9.09 Cents/kWh
- Wyoming 9.14 Cents/kWh
The five states with the most expensive electricity are:
- Hawaii 38.0 Cents/kWh
- California 27.04 Cents/kWh
- Connecticut 24.37 Cents/kWh
- Rhode Island 24.15 Cents/kWh
- Massachusetts 23.94 Cents/kWh
ALEC explained the differences in the lower and higher cost states, writing:
The contrast between these low-cost states and higher-priced regions highlights a recurring pattern observed throughout this report: states that avoid burdensome or prescriptive mandates, such as Renewable Portfolio Standards and cap-and-trade programs, generally achieve lower electricity costs for consumers and businesses. Policies that impose additional regulatory requirements on energy markets, including mandated net metering programs, can shift costs within the system and contribute to higher overall electricity prices. By limiting these types of mandates, states can help support household cost-of-living stability and maintain industrial competitiveness, particularly in energy-intensive sectors.
Action Line: Americans have mixed views on having data centers in their area. Some are eager for the jobs and investment in their regions, while others may be concerned that data centers will compete for scarce power, potentially driving up prices. But one thing Americans most likely all can agree on is that they’d prefer to pay less for electricity. ALEC makes it clear that regulatory burdens are raising costs in certain areas of the country, and that removing them could put money in Americans’ pockets that they could use on other priorities. If you’re looking for a better America, where costs are lower and freedom is greater, begin your search with Your Survival Guy’s 2026 Super States rankings. And click here to subscribe to my free monthly Survive & Thrive letter.
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