As major technology corporations proudly unveil their ambitious blueprints for the construction of vast new data centers across the globe, an undercurrent of public apprehension continues to intensify. According to a recent survey, many consumers now fear that this rapidly accelerating, AI-fueled expansion—often described as a digital gold rush—could ultimately cause a substantial increase in the cost of household electricity. The research, commissioned by solar installation company Sunrun, reveals that an overwhelming 80 percent of respondents expressed anxiety over the ripple effects that these energy-intensive facilities might have on their monthly utility bills.
Such concerns are not without merit. For more than a decade, electricity demand in the United States has remained remarkably consistent, according to data compiled by the U.S. Energy Information Administration (EIA). Yet, the landscape has shifted dramatically over the last five years. Commercial and industrial sectors—particularly data centers—have begun drawing significantly larger volumes of power from the grid. In fact, annual electricity consumption among commercial users has expanded at an average rate of 2.6 percent, while industrial users have followed closely with 2.1 percent annual growth. In stark contrast, residential electricity consumption has barely crept upward, averaging only 0.7 percent growth per year. This divergence underscores a structural transformation in how national electricity resources are being allocated.
Currently, data centers account for approximately four percent of all electricity generated in the United States—a figure that has more than doubled since 2018. The Lawrence Berkeley National Laboratory projects that by 2028, the sector’s share could balloon to somewhere between 6.7 and 12 percent, depending on technological and policy developments. Despite these surging demands, energy generation has thus far kept pace, largely due to a remarkable surge in renewable capacity—particularly solar, wind, and large-scale battery storage. Major technology companies have been signing extensive power purchase agreements for new utility-scale solar installations, drawn to solar energy’s combination of affordability, modular design, and rapid deployment. Notably, solar farms can begin supplying energy to data centers even before construction is fully completed, and the typical project can be built and activated within roughly eighteen months.
The EIA anticipates that renewable sources will continue to dominate new power generation capacity at least through the coming year. However, this momentum may soon face political headwinds. Analysts caution that a potential repeal—driven by a Republican congressional majority—of key provisions within the Inflation Reduction Act could severely constrain the ongoing expansion of renewable infrastructure, curtailing progress that otherwise might have extended well past 2026.
Meanwhile, natural gas—another major pillar in the energy strategies of data center operators—has not entirely lived up to expectations. Although domestic natural gas production has increased, the majority of additional output has been diverted toward the export market rather than sustaining domestic supply. Between 2019 and 2024, natural gas consumption by electricity generators rose by about 20 percent, while export consumption skyrocketed by an extraordinary 140 percent. The pace of new natural gas power plant construction also remains sluggish; according to the International Energy Agency, building a new facility can require approximately four years to complete. The situation has been further complicated by manufacturing bottlenecks, especially a growing backlog of gas turbine deliveries. Some producers are now quoting wait times extending up to seven years, and even the introduction of new production capacity is unlikely to resolve the shortfall in the near term.
These constraints—a combination of slow natural gas expansion and looming uncertainty around renewables—have placed data center developers in a particularly difficult position. Although AI infrastructure is not the sole driver of the nation’s increased electricity consumption (industrial activity contributes comparably), the prominence of artificial intelligence in public discourse has ensured that it remains the focal point of much scrutiny. According to a recent Pew Research Center survey, a majority of Americans report feeling more apprehensive than enthusiastic about the proliferation of AI technologies—a sentiment likely intensified by headlines depicting AI tools as instruments for workforce reductions rather than enhancements to human productivity.
When escalating energy prices are factored into this broader social context, the stage is set for a potential public backlash. The convergence of economic strain, technological disruption, and environmental uncertainty may soon compel both industry leaders and policymakers to confront a critical challenge: how to pursue innovation and data-driven progress without undermining affordability, sustainability, or public trust.
Sourse: https://techcrunch.com/2025/11/01/rising-energy-prices-put-ai-and-data-centers-in-the-crosshairs/
