For years, the Belden Brick Company in Sugarcreek, Ohio, experienced relatively stable electricity costs. However, last year their power bills surged by 90%, primarily due to rising demand from data centers in the region. The 141-year-old brick manufacturer, known for supplying materials to iconic buildings such as the Texas Alamo and Notre Dame University, saw its monthly capacity charge jump from $1,600 to $12,000.

Belden Brick is among many manufacturers across America's Rust Belt facing rising electricity costs as power-hungry data centers supporting the artificial intelligence industry proliferate. Factory electricity bills, a core expense, are increasing faster than those for many homes and other businesses.

Federal, state, and local governments are responding to consumer concerns and grid stability issues by pushing Big Tech companies to pay more for their expected electricity demand. However, some proposals group smaller factories with tech giants like Meta and Amazon, whose power needs can be up to 50 times greater than large manufacturers.

According to interviews with manufacturers, attorneys, and energy experts, electricity costs generally account for about 10% of residential bills but can be up to three times higher for manufacturers. The White House stated that former President Trump has taken steps to mitigate the impact on manufacturers, including hosting tech companies signing a "ratepayer protection pledge" and directing the construction of more power plants in the PJM grid region, funded by tech companies.

At least 10 U.S. states have pending regulations aimed at managing electricity demand from data centers, but these rules could also affect manufacturers, according to data from the nonprofit Smart Electric Power Alliance and North Carolina State University’s NC Clean Energy Technology Center.

Industry voices warn that some companies are "on the razor's edge," with potential short- and long-term impacts on their ability to continue operations. Manufacturers are striving to be creative to maintain competitiveness amid these rising costs.

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