Energy and power are fundamental to every part of the economy, and powering a home has become a notable monthly expense. Pricing is shaped by supply and demand, and demand has accelerated dramatically in recent years, driven not just by EVs and household appliances, but by the explosive growth of A.I. and data centers. Their power needs far exceed anything consumers use.

As electric bills climb, political pushback is growing. When a major tech company bids for the power required to operate data centers, they are willing to pay almost anything, backed by deep financial resources and often taxpayer funded incentives. That bidding pressure raises costs for local homeowners and businesses unless the tech company builds its own independent power source.

The U.S. energy grid is already strained by aging infrastructure, extreme weather, rapid demand growth and a shifting mix of energy sources. Today’s electricity breakdown looks like this:

• Natural gas: 43% (with prices up more than 50% year over year)

• Nuclear: 18.6%

• Coal: 16.2%

• Renewables: 21.4%

Even with modern efficiencies like LED lighting, the average U.S. household now uses 10,500–10,791 kWh per year, about 37% more than 50 years ago. Passive Houses can cut that dramatically, using as little as 25% of the energy of standard new construction and up to 90% less for heating and cooling. By contrast, large luxury homes consume significantly more to power advanced systems.

Electricity costs also vary sharply by state. Idaho and Washington have some of the lowest rates due to hydroelectricity, which is expensive to build but cheap to operate. Connecticut and Massachusetts pay more than double because they rely heavily on natural gas.

Businesses often pay lower rates than households due to high volume usage, negotiated contracts and higher voltage delivery that reduces energy loss. Homeowners can still find better pricing by securing 12 or 24 month fixed rate supply contracts, often saving around 10%, while improving insulation and efficiency measures at home.

Today’s homebuyers are paying close attention to utility reliability and cost, making energy infrastructure an increasingly important part of real estate decisions. Energy costs are becoming a critical part of real estate decision making. If you want help evaluating neighborhoods, comparing homes or understanding local utility structures, I’m here to guide you through the details with clarity.