The New Reality of Energy Costs in Building Operations

The New Reality of Energy Costs in Building Operations

The latest data from Goldman Sachs reinforces a trend we’ve been watching closely: electricity is getting more expensive and it’s happening faster than most people realize.

Through December 2025, electricity prices rose 6.9% year-over-year, with an average annual increase of 6.8% since January 2022. This trend significantly exceeds headline PCE inflation rates of 2.9% and 3.4%.

This is not just inflation. It reflects a structural shift in one of the most critical inputs to building operations. Energy, traditionally viewed as a stable line item, is now a volatile and material driver of operating costs. Operational efficiency is no longer just about sustainability or incremental savings; it is essential for resilience and control in an environment where energy costs are rising rapidly.

The opportunity and responsibility are clear. We must leverage better data, smarter controls, and continuous optimization to ensure buildings perform as efficiently as possible. The future of building operations will be defined by how well we manage energy and those who prioritize operational efficiency today will be best positioned to navigate the challenges ahead.

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