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Shocking report reveals which states face a hidden toll from energy-hungry data centers: 'We don't have enough supply'

The increased demand is increasing energy prices as well as the cost of homeownership in those states as people compete for resources.

The increased demand is increasing energy prices as well as the cost of homeownership in those states as people compete for resources.

Photo Credit: iStock

A new report from EnergySage, an independent and objective resource for information on all aspects of the solar industry, details the hidden costs of the AI explosion.

What's happening?

While AI continues to expand its capabilities, the energy needed to power it is tremendous. According to a report from the Electric Power Research Institute, 15 states generate 80% of the energy required to power them. Virginia delivers the most electricity to data centers, while Texas, California, Oregon, and Illinois also provide significant resources. 

Why is this important?

This is important because it is believed energy consumption will rise by up to 130% by 2030 due to AI data centers. The increased demand is increasing energy prices as well as the cost of homeownership in those states as people compete for resources. 

As Yuru Dvorkin, associate professor at Johns Hopkins Whiting School of Engineering explained, "Data centers have to compete for electricity with everyone else, and that creates scarcity… We don't have enough supply…"


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What's being done about electricity scarcity?

One of the best ways for individuals to offset these costs and produce energy responsibly is installing solar panels. Transitioning to solar saves consumers vast amounts of money. It is also good for the community as most excess energy is transferred to the grid, lowering costs for the community. 

It is also much better for the environment. Since solar energy doesn't require the burning of dirty fuels like coal, oil, and gas, no harmful emissions are released into the atmosphere. Less air pollution means better health outcomes for all living things. 

And it is now easier than ever to switch to solar. EnergySage offers a free online tool that compares quotes from vetted vendors, helping homeowners make the best decision. 

EnergySage's free online tool can save consumers up to $10,000. Incredibly, the company also offers a free online mapping tool that reveals the average cost of a home solar panel system on a state-by-state basis. It also details the incentives available for each state so customers can maximize their savings. 

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It is important for consumers to remember that solar panel incentives will not be around for much longer. Congress recently eliminated the Investment Tax Credit, as Solar Builder reported, which means for homeowners to take advantage of the 30% tax credit, they must install their solar panels by the end of the year.

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