The data centers that power the artificial intelligence revolution are driving up electricity prices for households — and price relief may not be coming anytime soon, according to energy experts.

Residential retail electricity prices in September were up 7.4% , to about 18 cents per kilowatt hour, according to the most recent data from the Energy Information Administration.

Electricity prices closely tracked inflation from 2013 to 2023, but will likely outpace inflation at least through 2026, according to an EIA forecast from May. Some regions will be hit harder than others, it said.

Energy experts and economists point to electricity-hungry data centers that underpin AI projects as a key reason for the price inflation.

These data centers are vast warehouses of computer servers

See Full Page