Aug 20, 02:53 PM

US Power Bills Surge 10% in 2025 on Tariffs, AI Data Center Demand

U.S. households are contending with the steepest rise in electricity costs in years. Bureau of Labor Statistics data show power prices climbing 5.5% over the past 12 months—more than twice the pace of overall inflation—while Energy Information Administration figures put the average residential bill nearly 10% higher so far in 2025 at 17.47 cents per kilowatt-hour. Energy prices have gained 38% in five years, leaving many consumers with what utilities call “sticker shock.” Analysts link the jump to a confluence of policy and demand shifts. The One Big Beautiful Bill Act, signed on 4 July, repealed federal tax credits for new wind and solar projects and imposed tariffs on steel, aluminum and cross-border electricity, driving up construction and import costs that utilities pass through to customers. At the same time, electricity-hungry data centers built to power artificial-intelligence services are multiplying, with federal forecasts showing the sector’s share of national consumption tripling to 12% by 2028. The strain is unlikely to ease soon. Climate think-tank Energy Innovation estimates the law’s energy provisions could boost wholesale power prices 74% over the next decade, adding roughly $170 a year to the average household bill by 2035. Developers plan to add a record 33 gigawatts of large-scale solar capacity this year, according to the EIA, but industry groups warn that the loss of federal incentives and higher input prices could delay projects, limiting relief for consumers already bracing for elevated utility charges.

#Bureau of Labor Statistics #Energy Information Administration #Energy Innovation #EIA

Written with ChatGPT .