It is not just summer heat putting pressure on the grid. Artificial intelligence is now a major force behind rising electricity costs. And for businesses of every size, energy bills are becoming less predictable and more difficult to manage.
Commercial and industrial users, who already represent the majority of grid demand, are now competing for capacity with one of the most energy-intensive technologies ever developed: artificial intelligence data centers. According to the U.S. Department of Energy, Data centers are one of the most energy-intensive building types, consuming 10 to 50 times the energy per floor space of a typical commercial office building. This shift is already reflected in rising market rates and is expected to accelerate further.
AI technology is powered by large-scale data centers that run nonstop and require enormous amounts of electricity for processing, cooling, and redundancy. As AI adoption expands, the infrastructure to support it continues to grow rapidly, and so does its demand on the grid.
A new report published by the U.S. Department of Energy found that data centers consumed about 4.4% of total U.S. electricity in 2023 and are expected to consume approximately 6.7% to 12% of total U.S. electricity by 2028.
Meanwhile, retail electricity prices have increased faster than the rate of inflation since 2022, and are expected to continue increasing through 2026, according to the U.S. Energy Information Administration.
Many companies still treat electricity like a background utility rather than a spend category with real sourcing potential. As a result, their contracts often go unreviewed, their pricing remains uncompetitive, and their invoices go unaudited.
Common problems include:
All of these contribute to overpayment, and in a market as volatile as energy, passive contract management can quickly become a six-figure mistake.
To address rising electricity costs, procurement teams need to apply the same discipline to energy sourcing that they use in other high-impact categories. Here are four proven strategies:
Identify billing errors, rate misclassifications, and unnecessary fees by reviewing historical invoices. Audits often reveal hidden cost recovery opportunities.
Electricity markets fluctuate. Strategic contract timing allows businesses to avoid peak-rate renewals and secure better terms through market intelligence.
The wrong rate structure can penalize businesses based on load profile or peak timing. Optimizing your classification to match operations can deliver significant savings.
Businesses with multiple sites or departments often manage energy independently. Centralizing the process leads to more competitive rates and stronger supplier leverage.
CenterPoint Group enables companies to take control of their electricity costs through our Group Purchasing Organization (GPO) model. We combine the purchasing power of multiple businesses to negotiate stronger contracts with top-tier energy suppliers.
Our energy procurement services include:
Because we manage the supplier relationships and bring category expertise, your procurement or facilities team gets better outcomes with less time and complexity.
We work across sectors including manufacturing, logistics, retail, healthcare, and more, anywhere energy matters to operations and bottom-line performance.
The AI boom is transforming how businesses operate, but it is also transforming how much they pay to keep the lights on. As demand for electricity surges, costs are rising, and the old approach to utility procurement no longer holds up.
Businesses that treat electricity as a strategic spend category will be better positioned to control costs, reduce exposure to market volatility, and free up working capital for innovation and growth.
CenterPoint Group can help make that happen. If your electricity contracts are coming up for renewal or if you're ready to benchmark your current spend, get in touch to learn how.