As the boom in artificial intelligence accelerates, so does the demand for electricity — and now, AI and data centers are taking the heat. A new report commissioned by solar company Sunrun reveals that 80% of consumers are concerned that the rapid expansion of data centers could make their energy bills more expensive.
It’s not just speculation. For years, the U.S. Energy Information Administration (EIA) reported stable electricity demand. But over the past five years, commercial users — especially AI and data centers — have ramped up consumption dramatically, outpacing both industrial and residential users.
Electricity Demand Soars as AI Grows
According to the EIA, commercial electricity demand has been growing by 2.6% annually, compared to just 0.7% among households. That growth is largely driven by AI and data centers, which now consume around 4% of all U.S. electricity, more than double their share in 2018.
By 2028, that figure could rise as high as 12%, according to the Lawrence Berkeley National Laboratory. This exponential growth highlights the massive power appetite behind the AI revolution.
Solar Power to the Rescue — For Now
The power grid hasn’t collapsed under the weight of this new demand — yet. Renewable energy sources, especially solar, have helped keep things balanced. Big Tech companies are racing to secure large-scale solar projects to power their AI and data centers.
Solar energy has become the go-to solution due to its low cost, scalability, and quick installation. A solar farm can begin supplying energy to a data center in as little as 18 months — far faster than traditional fossil fuel plants.
However, analysts warn that if political winds shift — such as a potential repeal of key provisions in the Inflation Reduction Act — the momentum of renewable energy could slow dramatically by 2026.
Natural Gas Struggles to Meet AI Demand
While solar is picking up steam, natural gas — another critical energy source for AI and data centers — is falling behind. Even though production is increasing, most of the new output is being exported rather than used domestically.
Between 2019 and 2024, electricity generation from natural gas grew by 20%, but exports jumped by a massive 140%. To make matters worse, building new gas-fired plants takes roughly four years, and a shortage of turbines has delayed construction even further.
This means the U.S. could face an energy crunch just as AI and data centers demand more power than ever before.
Public Concern Grows Over AI’s Energy Footprint
It’s no surprise that consumers are starting to push back. In a recent Pew Research survey, more Americans expressed concern than excitement about AI’s rapid growth — especially as companies use the technology to replace jobs rather than enhance productivity.
Add in rising utility costs, and it’s clear why many feel uneasy about AI and data centers. What was once seen as futuristic progress now looks like a potential drain on the grid — and on household budgets.
The Bottom Line: AI’s Energy Appetite Is Unsustainable
The AI boom shows no sign of slowing down, but its environmental and economic impact is becoming impossible to ignore.
Unless AI and data centers find more sustainable power sources — and governments accelerate renewable adoption — the tension between technological progress and rising energy prices will only grow.
In short, the AI revolution’s success may soon depend as much on clean energy innovation as it does on machine learning breakthroughs.
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