Americans Concerned About Rising Electricity Costs Due to AI

80% of US electricity consumers worry about data centers' impact on utility bills.

According to a Sunrun survey, 80% of electricity consumers in the United States are worried about the impact of data centers on their utility bills.

A poll of 1,000 American homeowners revealed growing distrust towards traditional energy companies and their ability to meet the nation’s increasing electricity demands. Many fear rising rates, more frequent outages, and an unprepared energy system for escalating loads.

Many are already experiencing instability:

• 81% have faced at least one outage in the past year;
• 60% have experienced up to three outages in the same period.

87% reported consequences such as spoiled food, lost income, and issues with medical equipment.

Renewable Energy Sources

According to data from the U.S. Energy Information Administration (EIA), electricity demand in the U.S. has remained stable for over a decade.

In the past five years, commercial users, including data centers and industrial enterprises, have increased their energy consumption. The annual growth was 2.6% and 2.1%, respectively.

Meanwhile, household electricity usage grew by 0.7% annually.

Today, data centers consume about 4% of U.S. electricity—more than double compared to 2018. According to forecasts by the Lawrence Berkeley National Laboratory, consumption is expected to rise from 6.7% to 12% by 2028.

The growth of new capacities in solar and wind energy, along with the implementation of industrial battery systems, has helped meet the rising demand.

The EIA anticipates that renewable energy sources will dominate new generating capacities at least through the next year. This trend could continue beyond 2026, but experts predict that Republican rollbacks of key provisions in the Inflation Reduction Act will hinder growth.

Natural Gas

Another energy source, natural gas, has not met expectations. Although production is increasing, most of the new volumes are directed towards exports rather than the domestic market.

Building new natural gas power plants will take longer than planned. Typically, it takes about four years to launch such facilities, but a turbine shortage has exacerbated the situation—manufacturers warn that timelines could extend to seven years.

A Problem Exists

The slow development of gas infrastructure, combined with limitations on renewable energy sources, has placed data center owners in a difficult position.

According to Pew Research, most respondents feel anxiety rather than inspiration about AI development. Mass layoffs only heighten fears and distrust of the technology.

Back in July 2024, Bernstein Research suggested a potential electricity shortage if the growth rate of demand from AI data centers continues.