Electric Power Generation & Distribution NAICS 2211

Nov 22, 2025 - AI, Cryptocurrency Mining to Drive Power Prices Higher

• Wholesale electricity prices are projected to rise sharply, with the US Energy Information Administration forecasting a load-weighted average of $47 per megawatt-hour in 2025, a 23% increase from 2024, and $51 in 2026, representing an 8.5% increase. The surge is primarily driven by a 45% increase at the Electric Reliability Council of Texas-North hub, reflecting higher natural gas costs and anticipated summer demand spikes. Electricity sales nationwide are projected to grow 2.4% in 2025 and 2.6% in 2026; however, the West South Central region, driven by data centers and cryptocurrency mining, is expected to experience significantly faster growth. Rising natural gas prices, tied to increased liquefied natural gas exports, are also contributing to higher power costs.
• Chevron plans to build a 2.5-gigawatt off-grid power plant in West Texas by 2027 that's powered by the company's natural gas, according to The Wall Street Journal. The facility, designed to support an AI data center, could expand to 5 gigawatts, signaling rising demand for large-scale, private energy infrastructure. Partnering with GE Vernova and Engine No. 1, Chevron’s move reflects growing interest from hyperscalers as grid limitations intensify. Chevron’s experience operating remote power in Kazakhstan and Australia positions it to scale quickly, though its long-term commitment to power remains uncertain. As tech firms seek reliable energy, utility contractors may see increased opportunities in turbine installation, transmission systems, and off-grid energy development.

• Dominion Energy’s 2.6-GW Coastal Virginia Offshore Wind project is 66% complete and on track for completion by late 2026, despite vessel delays, according to Utility Dive. The $11.2 billion project, a joint venture with Stonepeak, will be the largest US offshore wind farm. First power delivery is expected in early 2026. Tariffs may raise costs by $690 million, but Dominion projects a levelized cost of $84/MWh, still within its original range. Dominion’s electric sales rose 3.3% year over year, and data center demand continues to surge, with over 58 GW of requests since 2020. The company is pursuing a $50 billion capital plan across transmission, thermal, and renewable projects, including solar, storage, and a new gas plant. CEO Robert Blue emphasized bipartisan support and the project’s role in serving critical infrastructure.
• The tech industry’s thirst for electricity to power data centers for AI could increase costs for electric utilities as well as residential and commercial electricity customers, according to The New York Times. Data centers accounted for 4% of US electricity consumption in 2023, but some industry watchers suggest it could climb to 12% in three years. Residential rate payers in the US have seen their bills increase by 30% since 2020. While much of the increase was due to utilities hardening grids amid more intense weather events and routine maintenance, data center expansion is expected to drive costly improvements to the electric grid. Unless lawmakers and regulators compel tech companies to fund the upgrades, ordinary customers could see more rate hikes. While tech firms say they want to help fund grid expansion, including building their own electricity generation capacity, utilities could still face high upfront costs.