Do data centers increase electricity prices? Our latest report from @USCEnergy answers this question. We examine data center entry on wholesale (2020-2025) and retail electric prices (2015-2025) in the United States.
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--Retail markets--
A doubling of a utility's operating data-center capacity is associated with ~ 0.65% increase in residential prices, or $1.00–$1.06/MWh. There is no measurable impact on commercial or industrial rates.
May 26, 2026 · 5:08 PM UTC
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Notably, the residential price impact occurs only for customers of electric cooperatives and municipal utilities. There is no significant effect on investor-owned utilities’ (IOUs) retail rates, which serve 68% of the U.S. population.
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In sum, data centers have a small impact on wholesale prices and even smaller effect on retail rates for most customers. #datacenter #powerprices
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