The Macroeconomic Spillovers From AI Electricity Demand

Goldman Sachs

Manuel Abecasis, Hongcen Wei

Research

20 Pages

Goldman Sachs assesses the outlook for electricity prices and explore their spillover effects to consumers and non-AI businesses.

Key Takeaways

Data Centers: Goldman expects data centers to boost electricity demand significantly, accounting for about 40% of total power demand growth over the next five years.
Regulatory Environment: Regulatory delays and staffing and materials shortages will likely keep supply growth slow.
Outlook: Goldman expects consumer electricity inflation to remain around 6% in 2026-2027 before decelerating to about 3% in 2028 on lower natural gas prices. They expect electricity prices for non-AI businesses to rise by a similar amount.
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