Electricity Prices Surge 40% as AI Data Centers and EVs Drive Power Demand After 20 Years of Stability
Summary
Electricity prices skyrocket 40% since 2020 as AI data centers and electric vehicles shatter two decades of stable power demand, forcing utilities to spend over $1 trillion on new infrastructure while regulators battle over who pays the massive costs.
Key Points
- Electricity prices have jumped 40% since February 2020, outpacing the overall 26% increase in cost of living during the same period
- Rising demand from AI data centers, electric vehicles, and the shift from gas to electric appliances is driving increased power consumption after two decades of flat demand
- Utilities need over a trillion dollars in the next five years to build new power supplies and grid infrastructure, with regulators debating whether data centers or residential customers will bear these costs