Could AI Raise Your Electricity Bill? Here’s What We Found

Your Next Laptop Could Cost More Because of AI. Could Your Electricity Bill Be Next?

Techloy spoke to AI experts and industry leaders to find out whether consumers are paying the hidden cost of the AI boom.

Jul 28, 2026

by Ogbonda Chivumnovu

AI is making some technology more expensive today. Rising demand for memory chips used in AI data centres is pushing up the cost of laptops, smartphones, and other consumer electronics.
The AI boom is creating a massive infrastructure race. Tech giants are expected to spend around $720 billion on AI infrastructure in 2026, increasing demand for chips, servers, electricity, and specialised hardware.
Economists describe this as the “productivity J-curve.” Major technologies often become more expensive before they become cheaper, as businesses first invest heavily in infrastructure before productivity gains emerge.

The MacBook Air you bought two years ago for $1,099 now costs $1,299, while the MacBook Pro has climbed from $1,699 to $1,999. Even Xbox consoles now cost up to 150 more than before. In some parts of the United States, electricity bills, too, are also rising as utilities invest in expanding the grid.

Upon a first glance, these look like unrelated price increases. But one industry connects them all: artificial intelligence.

Building AI requires an unprecedented amount of computing power, memory chips, electricity, and infrastructure. Companies are spending hundreds of billions of dollars to build that capacity, and consumers are beginning to feel some of those costs.

Economists have a name for this phase of technological change: the "productivity J-curve." Before a breakthrough technology starts making businesses more efficient and reducing costs, it often becomes expensive first as companies pour money into infrastructure, equipment, and talent.

We saw this with the internet. We may be seeing it again with AI. But the scale this time is staggering: the five largest US hyperscalers are projected to spend around $720 billion in capital expenditure during 2026 alone.

So, is AI actually driving inflation? And if so, how much more will everyday life cost before the technology delivers the productivity gains it promises?

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