Rising energy prices are putting artificial intelligence and data centers in the crosshairs

As technology companies tout their plans for massive new data centers, consumers are increasingly concerned that an AI-driven gold rush will eventually drive up the price they pay for electricity, according to a new study.

the a 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 flat for more than a decade, According to To the US Energy Information Administration (EIA). Over the past five years, business users, including data centers and industrial users, have begun drinking deeper from the network, with annual growth rising at 2.6% and 2.1%, respectively. Meanwhile, residential use grew just 0.7% annually.

Today, data centers consume about 4% of the electricity generated in the United States, more than double their share in 2018. By 2028, consumption is expected to rise to 6.7% to 12%, According to To Lawrence Berkeley National Laboratory.

Generation has been able to meet demand thanks to an increase in new capacity from grid-scale solar, wind and battery storage. It was the big technology companies Signing big deals for new utility-scale solarIn particular, they are attracted by the low cost of the energy source, its modularity, and the speed of obtaining energy. Solar farms can begin delivering power to data centers before they are completed, and a new project typically takes about 18 months to complete.

The EIA expects renewable energy sources to dominate new generation capacity for at least the next year. This trend will likely extend beyond 2026, but experts predict that Republican repeal of key parts of the inflation-reducing law will hinder the growth of renewables.

Meanwhile, natural gas, another energy source favored by data center operators, has not met the moment. Production has risen, but most of the new supply has gone towards it Feeding exports Instead of the local market. Consumption of electricity generators increased by 20% between 2019 and 2024, while exporters consumed 140% more.

New natural gas power plants will not be ready in time either, since it will take a long time Four years To be completed, according to the International Energy Agency. The backlog of turbines used in gas-fired power plants has exacerbated the problem. Manufacturers quote delivery times Up to seven years outThe newly announced production capacity is It’s unlikely to change things.

Slow natural gas buildouts coupled with sluggish renewable energy sources have put data center developers in a bind.

While AI and data centers are not entirely responsible for the surge in electricity demand — industrial users have been nearly as power-hungry — they have been making headlines.

Artificial intelligence is likely to be the focus of consumer ire: More people are interested in the technology than are enthusiastic about it, according to a recent study. Pew survey. It’s no surprise that many employers use this tool A way to reduce the number of employees Instead of improving employee productivity.

Add high energy prices to the mix, and you can begin to see how a backlash could occur.