Artificial intelligence infrastructure spending drives up consumer prices

AI investment is pushing up prices for American consumers in 2025. Companies plan to spend more than $700 billion building data centers to power artificial intelligence this year. That spending has increased demand for computer chips, electricity, and construction workers. Memory chip prices could rise by as much as 400% between 2024 and the end of 2025. Wholesale prices for electronic parts were already 27% higher in May 2025 than a year before. Electricity bills are forecast to rise 6% in 2025 and 2026, and costs are expected to stay above normal into 2028. Construction worker wages have also gone up because so many new data centers need to be built. The Federal Reserve is watching these price increases with concern.