Despite President Trump's campaign promise to halve energy prices, U.S. electricity costs have risen significantly, with residential prices up 6.2% year-over-year by August 2025, driven by surging AI data center demand, a 37% increase in natural gas prices, and aging infrastructure. While gasoline prices saw a 6% decline over the same period, they remain far from the promised reduction. The administration's policies, including stripping renewable energy incentives and forcing older coal plants to remain operational, are cited as contributing factors to the upward pressure on electricity costs.
President Trump's campaign promise to halve energy prices within 12 months has not materialized, with U.S. electricity costs significantly rising nearly a year into his second term. Residential electricity prices jumped 6.2% year-over-year by August 2025, with the average household energy cost reaching $280.91, up from $261.57 previously. This upward trend is projected to continue through 2026, according to EIA data. The surge in electricity prices is primarily driven by escalating demand from artificial intelligence (AI) data centers, projected to consume 6.7% to 12% of total U.S. electricity by 2028, up from 4.4% in 2023. Concurrently, natural gas prices have surged 37% year-over-year, impacting electricity generation given its 40% share in the U.S. power mix. Aging infrastructure requiring costly upgrades also contributes to these price pressures. While gasoline prices offered some relief, falling 6% over the last 12 months to approximately $3.05 per gallon by October 2025, this decline falls short of the promised reduction. The administration's energy policies, including stripping incentives for renewable projects and forcing older coal plants to remain operational, are cited as exacerbating the upward pressure on electricity costs.
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