Impact of AI on Consumer Utility Bills

This report examines the rising utility bills for consumers in the context of the AI revolution and its implications for electricity and gas prices. According to Bank of America deposit data, the average utility payment for electricity and gas increased by 3.6% year-over-year in the third quarter of 2025. The report indicates that this increase may be influenced by rising demand for electricity generation capacity and grid investments, particularly due to the expansion of data centers. It also highlights that lower-income households are disproportionately affected by these rising costs, which could further strain their financial situation amidst slowing wage growth. The report discusses variations in utility payment experiences across major cities and notes that the pressure on peak electricity demand is likely to persist. Additionally, it outlines the expected growth in electricity demand driven by data centers and manufacturing, which could lead to continued upward pressure on utility bills for consumers in the near future.