Electricity costs for U.S. households have surged almost 10% since the start of the year, with analysts warning bills could rise by an additional $170 annually by 2035. The increase is being linked to the repeal of clean energy tax credits, newly imposed tariffs, and the rapid growth of electricity-hungry data centers powering artificial intelligence.
According to the latest figures from the Energy Information Administration, residential electricity prices rose from 15.95 cents per kilowatt-hour in January to 17.47 cents in May—marking a 9.5% jump since President Donald Trump began his second term. Over the past 12 months alone, electricity prices have climbed 5.5%, nearly double the pace of overall inflation, which stood at 2.7%.
Although Trump has repeatedly pledged to reduce household utility costs, several studies released this summer point to his policies as a driving factor behind the surge. These include new tariffs, a rollback of clean energy initiatives, and his support for the expansion of data centers to back the country’s artificial intelligence and cryptocurrency ambitions.
A recent analysis by Energy Innovation, a climate-focused think tank, estimates that provisions in the One Big Beautiful Bill Act—signed into law on July 4—will push wholesale electricity prices up by 74% over the next decade. This increase would translate into an average household cost hike of about $170 per year by 2035.
Tariffs on steel, aluminum, and related materials are expected to raise construction and maintenance expenses for transmission lines, substations, and power plants. These added costs will likely be passed down to consumers. Meanwhile, energy imports from Canada and Mexico are also subject to new tariffs, further straining supply.
Adding to the pressure is Trump’s push to make the U.S. “the world capital of artificial intelligence and crypto.” The resulting boom in power-intensive data centers has accelerated demand for electricity, further fueling higher prices for American households.
