WASHINGTON D.C., 28 October 2025 — U.S. retail electricity prices have jumped 13% since 2022, outpacing inflation and raising costs for consumers. While many blame the rapid growth of data centers, new analysis from Rystad Energy shows that their full impact on power prices is yet to be felt, and will emerge closer to 2030.
Rystad Energy’s report highlights that the booming demand for artificial intelligence (AI), cloud computing, and digital infrastructure is setting the stage for a major shift in U.S. energy consumption. Although data centers are expanding rapidly, their current influence on prices remains limited. The real challenge, Rystad warns, will come as the next wave of data centers goes live and intensifies strain on an already constrained power grid.
“Retail power prices reflect mounting costs of capacity charges, transmission and distribution (T&D) fees, and grid maintenance,” said Marina Domingues, Vice President and Head of U.S. New Energies at Rystad Energy. “As the grid adapts to higher data center demand and renewables integration, these costs will only rise, especially in less resilient systems.”
While wholesale electricity prices have remained relatively stable since 2023, retail consumers are paying much higher rates. In some regions, households and small businesses now pay up to 300% above wholesale prices, compared to typical wholesale premiums of around 120%. The widening gap reflects aging infrastructure, rising maintenance expenses, and the growing costs of integrating renewable energy.
The most affected areas include the New England Independent System Operator (NE-ISO), California ISO (CAISO), and New York ISO (NYISO) regions, facing high electrification rates, renewable intermittency, and significant transmission upgrades.
Although traditional sectors such as manufacturing and residential use still dominate energy consumption, data centers are emerging as the fastest-growing driver of new demand. Rystad forecasts that by 2030, data centers will account for 12% of total U.S. power demand, rising to 21% by 2050.
Domingues noted that this trend could fundamentally reshape how energy is priced and supplied.
“The widening gap between retail and wholesale power prices signals a growing divergence between energy and reliability costs. As more data centers are built near populated areas, consumers will feel greater upward pressure on their electricity bills,” she said.
The findings underline the urgency for policy action and investment in grid modernization, battery storage, and renewable baseload capacity. Without such measures, the expansion of data centers could deepen the strain on the U.S. power system and make the energy transition more expensive for everyone.
