AI infrastructure is driving electricity costs higher:
US industrial electricity prices in the top 5 states with the most data centers have surged +43% over the last 5 years.
These states are Virginia, Texas, California, Illinois, and Ohio.
By comparison, prices have risen +26% nationally over the same period.
Prices in both groups rose at a similar pace up until late 2022, coinciding with the release of ChatGPT in November 2022.
In those 5 states, household electricity costs have increased +7.0% annually since 2022, outpacing the +5.5% national rate.
Consequently, electricity prices in CPI inflation have soared +36% since 2020, while overall inflation has increased +25%.
AI demand is driving household power bills higher.
The trend is clear. As our chart shows, data-centre power demand is exploding across the US, Europe and Asia, and the squeeze is now showing up in household bills. Industrial grids were already tight, and the AI build-out since 2022 is accelerating the pressure. pic.twitter.com/CcsZ8p3NdV
— TSCS (@SCapStrategist) November 29, 2025