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Urban areas often experience higher air temperatures than their surrounding rural counterparts, a phenomenon known as the urban heat island (UHI) effect. This significant human-induced alteration of urban microclimates has notable consequences, especially on urban energy consumption and resulting economic implications. This study presents an in-depth analysis of the UHI effect on urban building energy consumption in a US Midwest neighbourhood. Utilizing a three-phase methodology, the research first simulated UHI intensities with current and future Typical Meteorological Year (TMY) data, integrated with the Local Climate Zone (LCZ) classification system and the Urban Weather Generator (UWG) model. The second phase employed the urban modelling interface (umi) for building energy simulation, capturing the UHI impact on both residential and commercial buildings. The third phase demonstrates that UHI effects lead to reduced heating demand but increased cooling requirements in the future, with residential areas being more affected. The study's findings reveal critical challenges for urban planners and policymakers, emphasizing the need for sustainable designs to address fluctuating heating and cooling demands in changing climates.