Rising energy prices put AI and data centers in the crosshairs

The article highlights growing consumer concerns that the rapid expansion of AI-driven data centers is contributing to rising electricity prices in the United States. Data centers currently consume about 4% of U.S. electricity—more than double their share from 2018—and this is expected to increase to between 6.7% and 12% by 2028. While electricity demand overall had been stable for over a decade, the surge in data center energy use is notable. Renewable energy sources like solar and wind have helped meet rising demand, favored by tech companies for their low cost and quick deployment. However, the future growth of renewables is threatened by potential political actions, such as a predicted Republican repeal of key parts of the Inflation Reduction Act. Meanwhile, natural gas, another preferred energy source for data centers, is facing supply challenges. Although production has increased, much of the new supply is being exported rather than used domestically. New natural gas power plants face long construction times and equipment backlogs, delaying