BAKU, Azerbaijan, October 29. U.S. retail
electricity prices have risen 13% since 2022, outpacing overall
inflation and adding pressure on consumers, according to new
research by Rystad Energy, Trend reports.
The study finds that, despite popular belief, data centers are
not yet a major factor behind the increase – but their full impact
on power prices will emerge closer to 2030.
Rystad notes that retail prices are being pushed up by higher
capacity charges, transmission and distribution (T&D) fees, and
system maintenance costs. “These costs have been trending upward as
grids adapt to rising data center demand and renewable
integration,” said Marina Domingues, vice president and head of US
new energies at Rystad Energy.
While wholesale electricity prices have remained relatively
stable since 2023, retail consumers are paying significantly more –
up to three times the wholesale cost in some regions. The sharpest
increases have been seen in markets that require extensive
infrastructure upgrades to handle variable renewable energy, such
as New England, California, and New York.
The report warns that the coming decade will bring even greater
challenges. Data center demand, which currently makes up a small
share of total U.S. electricity use, is projected to rise to 12% by
2030 and as high as 21% by 2050. Meeting this surge will be
difficult due to supply-side constraints, including generator
retirements, long interconnection timelines, and project viability
risks.
“The widening gap between retail and wholesale prices shows a
growing divergence in energy and reliability costs,” Domingues
said. “As data centers expand and electrification accelerates,
these pressures will increasingly show up in consumers’ bills.”
