Source: Fortune
Summary
Data center deals reached a record $61 billion in 2025, driven by hyperscalers expanding their computational power in the AI race. However, this growth is expected to lead to higher electricity prices, which will be passed down to consumers, particularly middle-class Americans, in the form of increased costs for food, transportation, and clothing. Goldman Sachs analysts forecast a 6% jump in consumer electricity inflation from 2026 to 2027, with larger electric bills for businesses leading to higher costs being passed down to consumers.
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The numbers tell one story. Data centers are gobbling up resources, with Alphabet, Microsoft, Meta, and Amazon projected to spend $700 billion on AI build-outs in 2026. This will lead to higher electricity prices, which will be felt by small businesses and working and middle-class Americans. The impact may seem small, but Goldman Sachs sees a ripple effect on consumer spending and U.S. GDP. The middle class is burdened with data center expansion as customers’ electric bills go up due to capital investments and data centers tightening electricity supply.
As Marc Conte, Fordham University economics professor, notes, “The urgency with which they’re trying to engage in this massive expansion, that also is going to be inflationary.” The rapid data center expansion is likened to a city’s decision to build a new sports stadium, with sacrifices needed to finance the undertaking not without risk to an area’s millions of residents.
We’re putting a lot of trust into these companies, allowing them to do things that they are admitting are going to be incredibly disruptive, with disproportionate burdens falling across households.
Author: Evan Null
