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Yale Climate Connections
Electricity prices in the U.S. are rising sharply, but the burden of rising bills isn’t evenly distributed.
A Yale Climate Connections analysis of electricity prices has found that data centers and other commercial electricity users are consuming more kilowatts than ever, but the price they pay for that electricity has risen only a little. And industrial users of electricity are actually paying lower prices, on average, than they were two years ago.
But between 2020 and 2024, residential electricity prices in the U.S. increased by 25%. In other words, people using their toasters, laptops, and electric heating and cooking at home are paying ever-increasing prices, while the data centers that are driving rapid growth in electricity demand are scoring handsome discounts.
