Tech companies are expanding their data center footprint, but consumers are raising concerns about the potential impact on electricity costs. According to a recent survey commissioned by solar installer Sunrun, 80% of consumers are worried about data centers driving up utility bills.
The surge in electricity demand from commercial users, including data centers, has outpaced growth in residential consumption. Data centers currently consume 4% of U.S. electricity, a figure expected to rise to 6.7% to 12% by 2028, as per Lawrence Berkeley National Laboratory projections.
To meet this growing demand, tech companies are turning to renewable energy sources like solar and wind. Solar, in particular, offers low cost, modularity, and quick deployment, enabling power delivery to data centers even before construction completion. The U.S. Energy Information Administration anticipates renewables continuing to dominate new generating capacity.
However, the industry’s renewable energy trajectory could face challenges due to potential changes in policy. Experts suggest that a repeal of certain parts of the Inflation Reduction Act by Republicans might hinder the growth of renewables beyond 2026.
Source: TechCrunch