The Center on Global Energy Policy (CGEP) at Columbia University's School of International and Public Affairs (SIPA) released new research on June 23, 2026, examining the drivers of rising electricity prices across the United States. The study identifies the growth of artificial intelligence (AI) and data centers as significant contributors to increasing demand and costs.
According to the CGEP report, electricity demand from data centers is projected to grow substantially, with AI workloads requiring significantly more power than traditional computing. This surge in demand is straining grid infrastructure and contributing to higher wholesale electricity prices, which are passed on to consumers.
The research also highlights other factors, including the retirement of coal-fired power plants, rising natural gas prices, and the costs of integrating renewable energy sources. The study recommends policy measures to address these challenges, such as improving grid efficiency, investing in energy storage, and implementing demand-side management programs.
CGEP Director Dr. Melissa Lott stated, 'Our analysis shows that without proactive policy interventions, electricity prices will continue to rise, particularly in regions with high concentrations of data centers.' The full report is available on the CGEP website.
