AI's growing energy demands are significantly impacting electricity costs for American consumers. Tech companies are investing heavily in data centers, causing electricity demand to spike unexpectedly. In 2025, consumers are paying 5.5% more for electricity compared to the previous year, a trend expected to continue as residential electricity rates may rise by 15 to 40% over the next five years. Experts had predicted rising demand but not the rapid increase linked to AI technology, leading to concerns about future costs.
Altman declared that a 'significant fraction of the power on Earth' should be dedicated to running AI.
Consumers paid 5.5% more for electricity in 2025, a rate increase that outstrips inflation during the same period.
Energy experts did expect electricity demand to rise, given the drivers of U.S. economic growth.
Rising electricity demand is expected to lead to higher electricity bills for Americans, with residential rates up 15 to 40% expected over the next five years.
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