Families won’t see relief from rising electricity prices anytime soon, as demand from artificial intelligence data centers soars while power supply grows slowly, according to Goldman Sachs.
Electricity prices jumped 6.9% in year over year 2025, more than double the headline inflation rate of 2.9%, Goldman analysts told clients in a research note published Wednesday.
Prices will continue to rise through the end of the decade as data centers make up 40% of electricity demand growth, the analysts said. This will lower disposable income, drag down consumer spending and slightly slow economic growth in the coming years, they said.
Households will see electricity prices rise another 6% through 2027, the analysts said. Price inflation will then slow to 3% in 2028 on lower natural gas prices, they said. Consumer spending growth will fall 0.2% through 2027 and economic growth will slow 0.1% as a result, according to Goldman.
The trajectory of electricity prices, however, will vary widely across the U.S. based on different regional market structures and what regulatory choices are made, the bank said.
