Rising Energy Prices Put AI and Data Centers in the Crosshairs
Rising energy prices are straining AI and data centers as electricity demand surges. Here’s how it impacts costs, consumers, and the renewable energy
Matilda
Rising Energy Prices Put AI and Data Centers in the Crosshairs
Rising energy prices have placed AI and data centers at the center of a growing debate about power demand, sustainability, and costs. As tech giants expand cloud infrastructure to fuel the AI boom, energy use has skyrocketed. According to the U.S. Energy Information Administration, data centers now consume around 4% of U.S. electricity—double their 2018 share—and could reach up to 12% by 2028. This surge is making consumers worry that the AI revolution could come with higher utility bills. Image Credits:Nathan Laine / Bloomberg / Getty Images How Are AI and Data Centers Driving Energy Demand? The explosion of AI models and cloud computing has dramatically increased electricity consumption. Each new data center requires vast amounts of power to run servers and cooling systems around the clock. Commercial and industrial demand has grown by over 2% annually, while residential use has stayed nearly flat. This shift means tech companies, not households, are driving much of the new strain on t…
