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EIA data, Rank.ai analysis

Cheapest industrial power for data centers

The lowest statewide average industrial electricity rate in the U.S., the benchmark power price for siting AI data centers.
industrial retail rate, lowest-cost state5.08¢ / kWh+0.92¢/kWhin New Mexico

Behind the number

The full field

  • New Mexico5.08¢
  • Louisiana6.10¢
  • Tennessee6.92¢
  • Texas7.21¢
  • Kentucky7.37¢
  • Washington7.43¢
  • Mississippi7.57¢
  • Arkansas7.85¢
  • South Carolina7.88¢
  • Montana7.97¢
  • Alabama8.11¢
  • North Dakota8.12¢

The board in rank order. The headline number is the top-ranked row, highlighted. Showing the top 12 of 51 ranked entries.

industrial retail rate, lowest-cost state by entry
RankEntryindustrial retail rate, lowest-cost state
1New Mexico5.08¢ / kWh
2Louisiana6.10¢ / kWh
3Tennessee6.92¢ / kWh
4Texas7.21¢ / kWh
5Kentucky7.37¢ / kWh
6Washington7.43¢ / kWh
7Mississippi7.57¢ / kWh
8Arkansas7.85¢ / kWh
9South Carolina7.88¢ / kWh
10Montana7.97¢ / kWh
11Alabama8.11¢ / kWh
12North Dakota8.12¢ / kWh

Over time

How the number has moved

4.33¢4.62¢4.91¢5.21¢May 31Jul 16Aug 31
View chart data
industrial retail rate, lowest-cost state by publication
As ofindustrial retail rate, lowest-cost state
Aug 31, 23:59 UTC5.08¢ / kWh
Jul 31, 23:59 UTC4.16¢ / kWh
Jun 30, 23:59 UTC4.62¢ / kWh
May 31, 23:59 UTC4.45¢ / kWh

About this metric

Electricity is the largest recurring input cost of an AI data center, and industrial retail rates vary several-fold between U.S. states. This chart tracks the floor: the cheapest statewide average industrial rate in the country, along with which state currently holds it.

Rates are monthly statewide average retail prices to ultimate industrial customers as reported by the U.S. Energy Information Administration, in cents per kilowatt-hour. A statewide industrial average is not a negotiated data-center tariff, but it is the consistent public benchmark siting teams start from, published on the same basis for all fifty states.

A few tenths of a cent per kilowatt-hour compounds into tens of millions of dollars a year at gigawatt scale. Read this line against the planned-capacity chart to see whether announcements follow cheap power.

Charts

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