As tech companies tout plans for massive new data centers, consumers are increasingly concerned that the artificial intelligence-driven gold rush will eventually drive up the price they pay for electricity, according to a new survey.
THE reportcommissioned by solar installer Sunrun, found that 80% of consumers are concerned about the impact of data centers on their utility bills.
Consumer concerns are not unfounded.
Electricity demand in the United States has remained stable for over a decade, according to at the US Energy Information Administration (EIA). Over the past five years, commercial users, including data centers and industrial users, have started to drink more deeply from the network, with annual growth increasing by 2.6% and 2.1%, respectively. Meanwhile, household use grew by only 0.7% annually.
Data centers currently consume about 4% of the electricity generated in the United States, more than double their share in 2018. By 2028, consumption is projected to increase to 6.7% to 12%. according to at the Lawrence Berkeley National Laboratory.
Generation has been able to meet demand thanks to the addition of new capacity from solar, wind and grid-scale battery storage. Big tech companies have signed big deals for new utility-scale solar, in particular, attracted by the low cost, modularity and speed of the power source. Solar farms can start powering data centers before they are complete, and a new project typically takes about 18 months to complete.
EPE expects renewables to dominate new generation capacity at least until next year. The trend likely would have extended beyond 2026, but experts predict that a Republican repeal of key parts of the inflation-reduction law would hamper renewable energy growth.
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Meanwhile, natural gas, another energy source favored by data center operators, has not yet responded. Production increased, but most of the new supplies have gone to feeding exports than in the domestic market. Consumption by electricity producers increased by 20% between 2019 and 2024, while exporters consumed 140% more.
New gas-fired power plants won’t be ready in time either, as they break ground four years to be completed, according to the International Energy Agency. The accumulation of wind turbines used by gas-fired power plants has exacerbated the problem. Manufacturers indicate delivery dates up to seven yearsand recently announced production capacity is unlikely to change things.
The slow growth of natural gas combined with renewable energy has put data center developers in a bind.
While AI and data centers aren’t entirely responsible for the rise in electricity demand — industrial users have been nearly as thirsty — they’re leading the headlines.
Artificial intelligence is likely to be at the center of consumer fury: More people are worried about the technology than excited about it, according to a Pew Research. It’s no surprise given that many employers use the tool as a way to reduce headcount rather than improve employee productivity.
Throw rising energy prices into the mix and you can start to see how reactions can occur.
