Read our full analysis for a more in-depth look at these trends.
Is the AI revolution raising consumers’ utility bills?
Increasing energy bills may become a headwind to consumers’ spending growth, especially for lower-income households.
October 2025
Key takeaways
- In Bank of America deposit data, the average utility payment for electricity and gas increased 3.6% year-over-year in the third quarter (3Q) of 2025. Rising consumer prices for electricity and gas suggest bill pressure could intensify in the coming months, depending on how the winter weather shapes up.
- More broadly, the rising demand for electricity generation capacity and grid investments, due in part to the build-out of data centers, appears to be placing more upward pressure on bills. BofA Global Research points to big increases in prices at auctions of electricity capacity as one sign.
- The pressure on peak electricity demand capacity will likely persist, potentially meaning unyielding pressure on customer utility bills. This impacts lower-income households disproportionately and is another headwind at a time of weakening wage growth for this cohort.
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