Electricity Prices Up Over 25% In Some States

By Douglas McIntyre  •  September 26, 2025
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In several states, electricity costs are up over 25%. A new analysis blames most of this one the electricity used by data centers. There are no short term answers about how to provide for legacy customers and this new, tremendously hungry set of clients.

Inside Climate Crisis examined federal data for both 2023 and 2024. Energy Information Administration electricity prices were up 9.5% nationwide through July. However, in several states, the increase was into the double digits.

The increase in Missouri was 38.3%. It is challenging to envision how middle-class households can afford such substantial increases. This is especially true if the rates rise annually.

North Dakota rose33.6%, New Jersey 28.6%  , Iowa 27.5%, and Montana 25.3%. A look at a map shows there is no geographical cluster. Nor is there a relationship to population size or density. 

Power Is Not Available

Inside Climate News makes the point, “Prices are increasing mainly because the spike in electricity demand—a significant portion of it from AI data centers and other superusers—is not being met with an adequate amount of new power.” There is no reason for customers to have sympathy for utilities. However, that does not mean utilities are not in a bind. Their ability to supply new electricity can be modest. Whatever increases they receive from current customers will not be sufficient for AI buildouts and the additional demands of air conditioning in parts of the country that are becoming progressively hotter.

Residential customers do not have the power to lower the increases if they act individually. The means, to have an effect, they will need to act together

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