Residential electricity costs are on the rise, according to data from the US Energy Information Administration (EIA). The average price of electricity in America has increased 13% since 2022, with the cost of retail electricity expected to grow faster than the rate of inflation, the report says. Some regions, like the Pacific, Middle Atlantic and New England, could see even higher increases than the national average.
The increases have largely been driven by the costs of updating and maintaining the power grid and other necessary infrastructure, particularly in the face of increasingly common severe weather events, according to experts on energy and computing who spoke with CNN.
But a new technological wave is also driving up electricity bills: The AI boom is boosting electricity demand and power resources as tech giants pour billions into what many believe is the biggest computing shift in decades. OpenAI and Broadcom announced a partnership just this week to design and develop 10 gigawatts of custom AI chips and systems, more than enough to power a major city.