According to a survey authorized by Sunrun Inc. for market research firm Wakefield Research, 80% of US consumers are concerned that the wave of AI-powered data centers will cause electricity prices they have to pay to increase sharply.
This concern is not unfounded as the demand for electricity in the US has been stable for many years but is starting to fluctuate significantly.
Data from the US Energy Information Administration (EIA) also shows that over the past 5 years, electricity consumption of businesses, including data centers, has increased by an average of 2.6% per year, while households have increased by only 0.7%.
Currently, data centers account for about 4% of the total national electricity, double that of 2018, and are expected to reach 6.712% by 2028.
To meet this sudden increase in demand, many technology companies have signed large-scale contracts with solar and wind power projects, due to low costs and quick completion time.
However, experts warn that renewable energy growth could slow down if some parts of the inflation Reduction Act are abolished in the future.
Meanwhile, natural gas, a popular source of energy for data centers, is scarce as most of the new output is used for export.
Many new power plants cannot be completed on schedule due to lack of turbines, with a delivery time of up to seven years.
As a result, data center developers are in a difficult position as electricity supply is limited, energy prices are escalating, while the demand for AI is still increasing sharply.
Although AI is not the only cause, it is becoming a "sacred object" for all concerns about electricity bills and instability in the energy industry.
