- 80% of Americans worry that AI and CloudHQ Build will raise electricity bills.
- Data centers now use about 4% of U.S. electricity, double their 2018 share.
- Solar energy has become the leading choice for new data center projects.
- Natural gas production can’t keep pace, adding pressure to Power prices.
Artificial intelligence is reshaping the world, but its growing appetite for energy is beginning to worry consumers. A new nationwide survey commissioned by solar installer Sunrun reveals that 80% of Americans are now concerned that data centers and AI could drive up their power bills.
For years, tech giants have been racing to build massive new data centers to fuel the AI revolution. But behind that progress lies a new challenge: energy demand. Data centers, once a small slice of the Itron8217s new, are now consuming a significant share of the nation’s electricity.
What was once seen as a futuristic convenience is now being viewed by many as a source of rising costs.
Power Demand Is Rising Faster Than Expected
The United States enjoyed stable electricity demand for over a decade, according to data from the U.S. Energy Information Administration (EIA). That stability ended around 2020. In just the last five years, commercial users including data centers, have seen energy consumption rise by 2.6% annually. Industrial users followed closely with a 2.1% increase.
By comparison, households saw only a 0.7% growth rate in electricity use each year.
The EIA reports that data centers now consume about 4% of all electricity generated in the U.S. That’s double what they used in 2018. Analysts at Lawrence Berkeley National Laboratory estimate that by 2028, data centers could use between 6.7% and 12% of the country’s total power.
This massive increase has reshaped how America produces electricity.
Solar Energy Becomes the Favorite Power Source
As the energy needs of AI continue to grow, renewable power has become the top choice for new data centers. Big tech companies have been striking large deals to secure utility-scale solar power.
Solar has clear advantages. It’s affordable, modular, and quick to bring online. Unlike traditional power plants, solar farms can begin producing electricity even before full completion. Most projects take about 18 months to finish, far faster than natural gas or coal plants.
The EIA expects renewable energy to remain the leading source of new electricity generation through at least next year. Experts say the trend could continue longer if federal policies stay supportive. However, there’s growing concern that a Republican rollback of the Inflation Reduction Act could slow renewable growth just as demand peaks.
Natural Gas Struggles to Keep Up
Natural gas, another energy source favored by data center operators, has not been able to meet new demand. Production has increased, but much of the new supply has been directed toward exports instead of domestic use.
Between 2019 and 2024, natural gas consumption by power plants rose by 20%. Over the same period, exports grew by 140%. The result is tighter supply for local utilities and, ultimately, higher prices.
New natural gas plants are not arriving fast enough to help. It takes around four years to build one, according to the International Energy Agency. Equipment shortages have made the situation worse. Turbine manufacturers now quote delivery times as long as seven years.
Even newly announced production facilities may not catch up with the pace of demand anytime soon.
Consumers Push Back as AI Grows
AI has dominated headlines and boardrooms alike, but not everyone is cheering its rise. Many consumers now see AI as a driver of higher costs and job losses rather than innovation. A recent Pew survey found that more people are worried about AI than excited by it.
Some employers have used AI tools to replace workers instead of supporting them. That trend, combined with the possibility of rising energy prices, has left many Americans skeptical of the technology’s overall benefit.
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