US Power Prices Surge 13% as Data Center Boom Set to Drive Costs Higher by 2030

WASHINGTON — US retail electricity prices have surged 13% since 2022, outpacing inflation, as growing demand from data centers begins reshaping national power consumption. According to Rystad Energy, data centers have not yet significantly influenced prices, but their full impact will emerge by 2030 when widespread infrastructure projects are completed and more facilities go online.

Rystad warned that meeting the upcoming surge in energy demand will be challenging due to generator retirements, lengthy interconnection delays, and project viability risks. Retail power prices are rising faster than wholesale rates, reflecting increased capacity charges, transmission and distribution (T&D) fees, and system maintenance costs.

Power Prices

The most affected regions include New England (NE-ISO), California (CAISO), and New York (NYISO), where major grid upgrades are underway to integrate renewables and support electrification. Data centers, currently a minor consumer, are projected to reach 12% of total US power demand by 2030 and 21% by 2050.

Rystad vice president Marina Domingues said the widening gap between retail and wholesale rates reflects growing strain on the grid, warning that costs tied to reliability and capacity will increasingly burden consumers near expanding data center hubs.

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