AI boom is making your utility bills more expensive, says BofA, and they're likely to keep going up

President Donald Trump, center, delivers remarks about AI infrastructure with Masayoshi Son, chairman and CEO of SoftBank Group Corp, Larry Ellison, executive charmain Oracle, and Sam Altman, CEO of Open AI in the Roosevelt Room of the White House, on January 21, 2025, in Washington, DC. (Photo by Jabin Botsford /The Washington Post via Getty Images) (Credit: Jabin Botsford /The Washington Post - Getty Images)

• Bank of America economist David Tinsley warns that consumers are indirectly footing part of the bill for the AI boom through higher utility costs. Average utility payments rose 3.6% year-on-year in Q3 2025, with Tinsley linking the increase to soaring electricity demand from data centers powering artificial intelligence. The build-out of infrastructure needed to support the AI boom—despite projects like the $500 billion Stargate initiative and massive investments by Microsoft, Google, and Nvidia—is straining the grid, driving up costs for all ratepayers, he said. Despite GDP-altering investments, electricity supply is struggling to keep pace with demand, suggesting prices will continue to rise and pressure household budgets in the months ahead.

Silicon Valley may be pumping billions into the AI boom, but it seems consumers are inadvertently paying a share too.