Power Companies Are Pushing For $29B In Rate Hikes To Feed AI’s Massive Energy Appetite

Your electricity bill just became AI’s latest victim. Power companies across America are pursuing $29B in consumer rate hikes during 2025’s first half — a 142% jump from the same period last year, according to PowerLines research. This surge is driven by AI data centers, whose soaring energy needs are forcing businesses to have massive grid upgrades.

• National GridNGG
  received approval for a $708M rate bump, translating to ~$50 monthly increases for customers across New York and Massachusetts.
• PG&EPCG
  requested a $3.1B rate hike in April, affecting 5.5M business and residential customers throughout northern and central California.

The current flowing forward: Power consumption projections show electricity demand doubling within the next decade due to AI’s voracious appetite for energy, according to BloombergNEF. To avoid making consumers foot the bill, some utilities are experimenting with “large-load tariffs” that make big energy users pay their fair share, while others are cutting behind-the-scenes deals with data centers. With Utilities Select Sector SPDR FundXLU

, Vanguard Utilities ETFVPU

, and iShares US Utilities ETFIDU

rising 7.32%, 7.63%, and 8.23%, respectively, this year, investors are betting these rate hikes won’t slow the sector down — but consumers might get shocked by the final bill.