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New report warns data centers will drive massive spikes in electricity consumption — and Americans could foot the bill

"Significant and urgent."

"Significant and urgent."

Photo Credit: iStock

The rise of artificial intelligence could double the demand for electricity by 2030, according to EnergySage.

What's happening?

Computer data centers that run AI systems , such as ChatGPT are expected to increase their power consumption by 130% before the end of this decade. These facilities have already increased their electricity consumption by 12% each year since 2015.

Power companies are planning to build new plants that use natural gas, solar energy, and wind energy. However, the reconciliation bill now moving through the Senate could eliminate the clean energy tax credits created by the Inflation Reduction Act. Those credits incentivize these companies to opt for these forms of clean energy.

"The need for clean energy extends far beyond data centers," says Daniel Bresette, president of the Environmental and Energy Study Institute. 


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"Even without taking into account climate or environmental concerns, which are significant and urgent, the U.S. energy sector has been on a clean-cleaner-cleanest trajectory powered by the cost-competitiveness of renewable energy."

Why is AI energy demand concerning?

This power surge could hit your wallet if new policies slow down renewable energy progress, as training AI requires huge amounts of computing power. By 2030, our country may consume more electricity for data processing than for producing all our aluminum, steel, and cement products combined.

Data centers bunch up in certain areas, creating hotspots that overload local grids. When power companies add new equipment, they often stick those costs on your monthly bill.

Solar power helps keep these costs down. Without renewable energy growth, your electric bills could rise sharply.

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What's being done about AI energy demand?

Many tech companies are buying renewable energy through special contracts. Some are building data centers right next to solar farms.

You can help, too. If you're concerned about how local or pending AI development might impact your electricity expenses, get in touch with your representatives.

Taking advantage of available incentives soon could save you hundreds, as President Trump has said he wants to eliminate these subsidies to reduce federal spending. While changes to these incentives would require a Congressional act, the benefits available today may disappear tomorrow.

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