The levelized cost of electricity (LCOE) for newly built combined-cycle natural gas power plants in the United States is projected to rise to $51-$129 per megawatt-hour by 2026, the highest in 15 years. Simultaneously, the costs of solar and onshore wind power are also increasing, with solar project construction costs rising 18% year-over-year and the median LCOE for onshore wind power increasing by approximately 11%.
Surge in demand from data centers, coupled with a shortage of power generation equipment, grid expansion, and rising capacity costs, is driving up electricity bills for American residents and businesses. 77% of Americans are concerned that AI data centers will push up electricity prices, making electricity affordability a significant political issue ahead of the November midterm elections.
