Usman Salis
⬤ Average unpaid utility bills in the United States have reached an unprecedented £789, the highest figure ever recorded. The jump from about £600 in 2022 shows that household electricity debts keep rising as costs rise across the power system.
⬤ Electricity prices are rising at more than twice the rate of inflation. Over seven months, power costs rose roughly 10 % while inflation stayed near 2 %. Regional differences are stark. California's rate has hit 31 pence per kilow hour while the national average is 15.8 pence. Uncertainty within the grid is also increasing. Only 19 % of utility executives feel confident about forecasting future demand. More than half report they do not have enough power to accept new customers.
⬤ Artificial-intelligence hardware is straining the system. Each AI server uses 3,000 - 5,000 watts compared with 300 - 500 watts for a conventional server. Data centers already account for around 4 % of U.S. electricity. Goldman Sachs predicts global data center power demand will rise 165 % by 2030. Data centers need roughly 18 months to build. Electrical infrastructure can take six years.
⬤ Northern Virginia shows what lies ahead. Data centers there already use 26 % of regional electricity. The combination of record overdue bills, quickly rising prices and expanding AI-related demand places increasing pressure on the existing grid. It also raises questions about infrastructure capacity and about the accelerating energy footprint of power intensive technology growth.
Usman Salis
