Here’s Why Every Business Should Prepare for the AI Boom (or Bust)

Artificial intelligence-related investment is rapidly reshaping electricity costs in America

Artificial intelligence-related investment is rapidly reshaping commercial electricity market costs in the United States. While many businesses are uncertain about if or how they will integrate AI into their actual operations, one thing is for sure: electricity prices are rising, and every business needs to update their energy procurement strategy to make sure they take advantage of potential energy cost reductions.

AI software is powered by massive data centers. Often located (or soon-to-be located) in unassuming rural and suburban areas, these data centers require a colossal amount of electricity. Energy providers are reporting unprecedented increases in regional electricity usage, the likes of which haven’t been seen in the United States in many years.

Although electricity providers are expanding their infrastructure as quickly as possible to meet this skyrocketing demand, electricity rates are already rising substantially for the average consumer. Commercial electricity rates around the country rose by an average of over 6% in 2025, with even higher increases in the regions affected most acutely. Since 2020, wholesale electricity prices have jumped as much as 267% in states where data centers are growing the fastest, like Texas and Virginia. 

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While many larger corporations have some advantages for negotiating over these rising costs with energy providers, smaller businesses are vulnerable. These businesses are often less familiar with energy contract negotiation, energy supply management, and how to find an energy broker. 

The good news is, your business has more energy cost control options than you may have realized. States like New York, Pennsylvania, Texas, and the District of Columbia (DC ) operate a deregulated electric grid, which means that there isn’t one single company dictating your  commercial electricity rate. Instead, retail electricity providers (REPs), Electric Generation Suppliers (EGS), and other vendors compete with each other to offer pricing that is attractive to consumers. An energy advisor can assist your business with commercial electricity procurement, making sure that you have a plan that insulates your utility rates from rising costs.

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