"Data-center deals crested above $61 billion in 2025 as hyperscalers rushed to expand their computational power in the AI race. But middle-class Americans aren't just the ones footing a chunk of the bill to power these centers. The trickle-down inflation from higher business production costs are likely going to bump up the prices of food, transportation, and even clothing, according to Goldman Sachs analysts-putting already cash-strapped Americans in an even bigger pinch."
"In a note to clients on Wednesday, Goldman Sachs analysts Manuel Abecasis and Hongcen Wei forecasted that consumer electricity inflation would jump 6% from 2026 to 2027 before decelerating to 3% the following year due to lower natural gas prices. But larger electric bills for businesses like hospitals and restaurants means more costs being passed down to consumers, Goldman Sachs warned-it's called inflation."
"Electricity prices have already swelled nearly 7% through December 2025, far above the headline 2.9% inflation rate, the bank noted. Moreover, utilities requested a record-high $31 billion in increased rates in 2025, more than twice the rate of 2024, according to data from nonprofit PowerLines. While an aging grid, extreme weather, and increased natural gas prices has contributed to more than 25 years of ballooning electricity prices, now data centers are gobbling up resources."
Data-center investment topped $61 billion in 2025 as hyperscalers expanded computing capacity for AI. Forecasts project consumer electricity inflation rising about 6% from 2026 to 2027, then easing to roughly 3% as natural gas prices fall. Higher commercial electricity bills will raise business production costs and are expected to push up prices for food, transportation, and clothing. Electricity inflation already outpaced headline inflation in 2025, while utilities sought record rate increases. An aging grid, extreme weather, higher fuel costs, and growing data-center demand will intensify cost pressures on small businesses and lower-income households.
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