US Electricity Prices Are ‘Skyrocketing,’ Says Kobeissi Letter as AI Boom Drives Demand, Marjorie Taylor Greene Questions AI Companies’ Promises of Thousands in ‘Free’ Monthly Payments
Key takeaways
- Electricity prices are climbing sharply due to AI data‑center demand, and policy moves are underway to shift upgrade costs onto large‑load tech firms.
- Average residential price 19.6¢/kWh in August 2026
- 11% rise since January 2025
- 40% higher average price in first 8 months of 2026 vs 2019
What happened
The Kobeissi Letter warned that U.S. residential electricity prices have jumped 11% since January 2025, reaching 19.6 cents per kilowatt‑hour in August 2026, the highest level in recent memory. The post linked the rise to the AI boom, noting that data centers consume huge amounts of power— a 1‑gigawatt center can use as much electricity as 800,000 homes. Former Rep. Marjorie Taylor Greene criticized AI firms’ promises of “free” monthly payments, calling the claims unrealistic.
Why it matters
Higher electricity costs hit households directly, eroding disposable income and potentially slowing consumer spending. The surge reflects a broader shift in energy demand toward data centers, which could strain the grid and prompt higher rates for all users. The debate over who should pay for grid upgrades—utilities…
Short-term and longer-term
Short-term. In the next few weeks, watch for utility rate filings and any amendments to the Ratepayer Protection Act that could trigger immediate rate hikes.
Longer-term. Over the next few months, the shift of grid‑upgrade costs onto major tech companies could improve their cash flows and reduce regulatory risk, potentially supporting their long‑term valuation.