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.”