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Official estimates suggest data centers electricity consumption will surge by 2030

By Mark Huffman of ConsumerAffairs

• Data centers and cryptocurrency mining could raise the average U.S. household electric bill by about 8% by 2030, with increases topping 25% in some high-growth areas, according to research cited by the Congressional Research Service and Pew Research Center.

• The Department of Energy says data centers could consume as much as 15.3% of all U.S. electricity by 2030, up from about 4.4% in 2023.

• Federal and state regulators are increasingly adopting special rates and contracts designed to make data centers pay for the power plants, transmission lines and other infrastructure needed to serve them rather than shifting those costs to households.

The artificial intelligence boom is creating an enormous new appetite for electricity, and government agencies and researchers are beginning to put numbers on what that could mean for household electric bills.

The estimates vary widely depending on where consumers live and how utilities divide the costs of new power plants and grid improvements. But some projections suggest data centers could add hundreds of dollars a year to household electricity costs in the areas experiencing the most rapid growth.

Research cited by Pew Research Center estimates that data centers and cryptocurrency mining could increase the average U.S. electric bill by about 8% by 2030. In the data-center-heavy markets of central and northern Virginia, the increase could exceed 25%.

For a household with a $150 monthly electric bill, an 8% increase would translate into about $12 more a month, or $144 a year. A 25% increase on the same bill would amount to an additional $37.50 a month, or $450 a year.

Those figures aren't forecasts of exactly what consumers will pay. Electricity bills depend on local utility rates, fuel costs, weather, consumption and decisions by state regulators. But they illustrate the potential size of the impact if utilities are allowed to pass a significant portion of data-center-related expenses on to residential customers.

Electricity demand is soaring

The Department of Energy's Lawrence Berkeley National Laboratory estimated that data centers consumed about 4.4% of U.S. electricity in 2023. Its latest update estimates that they could consume 11.8% by 2030, with scenarios ranging from 9.5% to 15.3%.

That rapid increase matters because utilities may have to build generating plants, substations and transmission lines to accommodate enormous new loads.

The Congressional Research Service says the effect on consumers isn't automatic. If a utility already has enough unused capacity, adding a large data center could actually spread fixed costs over more electricity sales and potentially lower rates. But if utilities must make major investments specifically to serve data centers, rates could rise if those costs are shared with residential customers.

A 2026 Berkeley Lab analysis makes the same point. Some utilities project that data centers could eventually lower residential bills by spreading fixed costs among more customers. For example, NIPSCO has estimated data-center agreements in Indiana could eventually save residential customers $7 to $9 a month. But Berkeley Lab cautions that those benefits aren't guaranteed, particularly if new facilities don't materialize after utilities have invested in infrastructure for them.

Some consumers are already seeing the impact

The issue is especially visible in PJM, the huge regional electricity market covering all or parts of 13 states and the District of Columbia.

Previous increases in PJM's capacity-market costs, attributed in significant part to data-center demand, were expected to add about $18 a month to an average residential bill in western Maryland and $16 a month in Ohio, according to estimates cited by Pew.

Virginia offers perhaps the clearest example of the impact. The state has one of the world's largest concentrations of data centers, and its State Corporation Commission has approved a separate rate class for large data-center customers. The goal is to require those companies to shoulder more of the costs of generation, transmission and distribution infrastructure required to serve them.

Regulators are trying to prevent cost shifting

The Federal Energy Regulatory Commission is also addressing the problem. In a June 2026 order, FERC backed the use of "Cost Recovery Agreements" intended to ensure that large electricity users pay costs incurred to serve them even if a planned project doesn't ultimately come online.

The commission specifically said the agreements are designed so that when infrastructure is constructed for a data center that fails to materialize, residential customers aren't left paying for it.

That distinction may ultimately determine how much AI shows up on consumers' electric bills.

Data centers unquestionably require enormous amounts of power, but higher electricity demand doesn't necessarily translate dollar-for-dollar into higher residential rates. The key question is who pays for the billions of dollars in new generating capacity, transmission lines and substations required to accommodate that demand.

Increasingly, regulators appear to be moving toward an answer: the companies creating the demand should pay a larger share of the bill.

A few changes to your browser, apps and accounts can reduce the amount of information companies collect

By Mark Huffman of ConsumerAffairs

• Turn on your browsers strongest tracking protections and limit third-party cookies, which can be used to follow your activity across websites.

• Review app and device permissions, especially access to your location, contacts, microphone, camera and photos.

• Reduce the amount of information companies can connect to you by opting out of targeted advertising, removing unnecessary apps and accounts, and requesting deletion or opt-outs from data brokers when available.

Every click can leave a trail.

Websites, apps, advertisers and other companies can collect information about what consumers search for, where they go, what they buy and which devices they use. That information can be used to personalize services and advertising, but it can also be shared or sold and combined with information from other sources to build detailed profiles.

The Federal Trade Commission says online tracking helps explain why consumers see ads tailored to their interests and why websites and apps remember their preferences. The agency advises consumers to use available privacy controls, opt out of targeted advertising and consider removing their information from data broker sites.

Completely eliminating online tracking can be difficult. But consumers can substantially reduce the amount of information they expose by changing a handful of settings and habits.

Start with your browser

A good first stop is the privacy section of your web browser.

Cookies are small pieces of information stored by a browser. Some are useful: They can keep consumers signed in, remember preferences or maintain a shopping cart. Persistent cookies, however, can remain for months or years and can be used to record activity over time. The FTC says browsers can be configured to warn users about cookies or limit the types they accept.

Consumers should look for settings that block or restrict third-party cookies and cross-site tracking. Browsers may also offer additional tracking-protection settings.

Clearing stored cookies periodically can remove some existing identifiers, although doing so may sign consumers out of websites or reset saved preferences.

And cookies aren't the whole story. Companies can use other techniques, including information about a device, operating system, IP address and other characteristics, to identify or associate users and devices.

That means simply deleting cookies isn't a complete privacy solution.

Take a close look at app permissions

Phones can provide companies with information that isn't available from ordinary web browsing, including precise or approximate location and access to cameras, microphones, contacts and photos.

Consumers should periodically open their phone's privacy settings and review which apps have permission to access those features.

The question to ask is simple: Does this app actually need this information to provide the service I use?

The FTC recommends checking what information an app requests and limiting location sharing when it isn't necessary.

Consumers can also delete apps they no longer use. Fewer apps can mean fewer companies with opportunities to collect information from the device.

Say no to targeted advertising

Major operating systems, websites and online services commonly provide advertising or privacy settings that allow consumers to limit personalization.

Turning off personalized advertising doesn't necessarily mean consumers will see fewer ads. Instead, it can reduce the use of their activity or interests to decide which advertisements they see.

The FTC specifically recommends looking for options to opt out of targeted advertising as one way of reducing online tracking.

Consumers should check these settings periodically. A privacy choice made in a browser doesn't necessarily carry over to an app, another device or a separate account.

Be stingy with personal information

Tracking becomes more revealing when online activity can be tied to a person's identity.

Consumers can limit that connection by thinking twice before providing a phone number, date of birth, location or other personal information when it isn't necessary.

Signing into a service can also make it easier for a company to associate activity across devices. The FTC has previously described account sign-ins as one way companies can deterministically link a consumer's different devices.

That doesn't mean consumers should avoid accounts altogether. But before creating one, it can be worth asking whether an account is actually necessary.

The goal isn't necessarily to disappear from the internet. It's to leave a smaller trail.

But home prices remain high, presenting affordability challenges

By Mark Huffman of ConsumerAffairs

• The average 30-year fixed mortgage rate fell to 6.65% this week from 6.67%, marking the second consecutive weekly decline.

• Rates remain higher than a year ago, while elevated borrowing costs continue to limit how much home many buyers can afford.

• The housing market is showing signs of better balance, but sales remain sluggish as affordability continues to sideline many would-be buyers.

Mortgage rates declined for the second week in a row, giving prospective homebuyers a little relief but leaving borrowing costs high enough to remain a significant obstacle for the housing market.

The average rate on a 30-year fixed-rate mortgage fell to 6.65% for the week ending Aug. 20, according to Freddie Mac's latest Primary Mortgage Market Survey. That's down slightly from 6.67% last week, but above the 6.58% average recorded at the same time last year.

The average 15-year fixed mortgage also dipped, falling to 5.95% from 5.96% a week earlier. A year ago, the 15-year mortgage averaged 5.69%.

Mortgage rates declined for the second consecutive week, Freddie Mac said in releasing the survey, adding that the drop provides modest relief for homebuyers.

The improvement is small. For buyers already stretching their budgets, however, even modest changes in rates can affect monthly payments and purchasing power.

Mortgage rates are still historically expensive for today's buyers

The latest decline doesn't erase the run-up in borrowing costs this summer. Freddie Mac's survey put the 30-year rate at 6.43% in early July before it climbed as high as 6.69% in early August.

That leaves today's buyers dealing with mortgage rates well above the levels that helped fuel the pandemic-era housing boom and with home prices that remain elevated.

The combination has kept affordability at the center of the housing market's problems. A lower mortgage rate reduces the amount of interest a buyer pays and increases purchasing power, which is why relatively small rate movements can matter to households shopping near the limits of their budgets.

For example, principal and interest on a $300,000, 30-year mortgage would be about $1,896 a month at 6.5%, according to Freddie Mac. At 7%, the payment rises to about $1,996 roughly $100 more each month, before taxes and insurance.

Housing sales remain subdued

High financing costs continue to show up in housing-market activity.

Existing-home sales fell 1.7% in July from June, to a seasonally adjusted annual rate of 4.06 million, according to the National Association of Realtors. Sales were still 0.7% higher than a year earlier, and year-to-date sales were up 2.4%.

Meanwhile, the median existing-home sales price rose 2% from a year ago to $434,100. Inventory totaled 1.54 million homes, representing a 4.6-month supply at the current sales pace.

NAR Chief Economist Lawrence Yun said the market has remained surprisingly stable despite higher mortgage rates, but he argued that sales could be considerably stronger if average mortgage rates moved back toward 6%.

That may be the key threshold to watch heading into the fall.

Buyers have more choices but affordability remains uneven

There are signs that conditions have become friendlier for buyers in other ways.

Realtor.com reported that active inventory recently reached its highest level since November 2019, while asking prices have been running below year-ago levels. More supply can give buyers additional choices and bargaining power, particularly compared with the severe inventory shortages that characterized the pandemic housing boom.

But a more balanced market doesn't necessarily mean an affordable one.

A Realtor.com analysis released this week found that the market has become increasingly divided by buyers' financial resources. While inventory and demand appear better aligned overall, engagement among shoppers looking for lower-priced homes has weakened substantially. Higher-end buyers, by comparison, have remained more active.

That suggests some of the apparent improvement in supply-and-demand balance is coming not just from more homes being available, but from financially stretched buyers leaving the market.

Consumers are spending, just not as much

By Mark Huffman of ConsumerAffairs

• Walmarts U.S. comparable sales rose just 2.6% in the latest quarter, its slowest growth in more than six years, as lower-income shoppers remained cautious.

• Higher-income households are still spending and Walmart continues to gain market share, suggesting the consumer slowdown is uneven rather than broad-based.

• Walmart raised its full-year outlook, but executives described the consumer environment as softer and are leaning harder on price cuts to keep shoppers spending.

Walmarts latest earnings offered a mixed diagnosis of the American consumer: Shoppers are still spending, but mounting pressure from higher everyday costs is making some households increasingly selective about where their money goes.

The countrys largest retailer said that U.S. comparable sales excluding fuel increased 2.6% in its fiscal second quarter, down from 4.1% in the previous quarter and the weakest growth in more than six years. The result fell short of Wall Street expectations.

That headline number looks somewhat worse than the underlying retail business. New rules lowering prices on some Medicare drugs created a sizable drag on Walmarts pharmacy sales. Excluding health and wellness, comparable sales increased 3.4%. Transactions rose 1.5%, while the average amount customers spent per transaction increased 1.1%.

However, the results add to evidence that the U.S. consumer is losing some momentum after repeatedly defying predictions of a slowdown.

Using tariff refunds to cut prices

But the company said it is also working harder to give customers a reason to buy. Walmart received roughly $2.9 billion in tariff refunds during the quarter and is using some of that windfall to lower prices on thousands of products. The company said it is investing in prices because customers are looking for value, with additional discounts expected as it tries to offset some of the inflation hitting household budgets.

That strategy focuses on one of the central messages in the earnings report: Price sensitivity is becoming more important.

The Commerce Department reported last week that U.S. retail and food-service sales fell 0.6% in July from June, although they remained 5% higher than a year earlier. Walmart executives, meanwhile, described the current environment as softer than it was when the company issued its annual outlook in February.

The pressure is particularly visible among shoppers with less money to spare.

Lower-income consumers are more selective

Lower-income consumers have been more cautious, while households earning more than $100,000 continued to help drive Walmarts market-share gains. Higher gasoline and food costs are forcing some shoppers to devote more of their budgets to necessities, leaving less room for discretionary purchases.

That divide matters because Walmart has increasingly attracted affluent consumers in recent years. The retailers ability to keep gaining share among those households gives it a cushion even as financially stretched customers pull back.

There are other signs that consumers have not simply stopped spending. Grocery, toys and fashion performed well during the quarter, and Walmart said it gained market share across income groups. Online shopping was particularly strong: Walmart U.S. e-commerce sales increased 24%, while store-fulfilled delivery grew 40%. Globally, e-commerce sales rose 23%.

That suggests consumers may be changing how and where they spend as much as how much they spend. Walmarts combination of groceries, low prices and increasingly fast delivery can make it a beneficiary when households become more value-conscious.