A new survey commissioned by solar installer Sunrun found that 80% of consumers worry data centers will increase their electricity bills. The findings reflect rising public unease over the AI industry’s soaring energy appetite — and its potential impact on utility costs.
For years, U.S. electricity demand remained flat, according to the U.S. Energy Information Administration (EIA). But over the past five years, commercial and industrial users, including data centers, have driven significant growth. Commercial power use has risen 2.6% annually, and industrial consumption is up 2.1%, while residential demand has increased by only 0.7%.
Data centers now consume roughly 4% of all U.S. electricity — more than double their share in 2018. That figure could rise to between 6.7% and 12% by 2028, according to projections from Lawrence Berkeley National Laboratory.
The surge in energy demand has so far been offset by rapid growth in renewable generation. Solar and wind projects, along with grid-scale battery storage, have expanded quickly to meet new needs. Large technology firms have signed major agreements for solar power, drawn to its low cost and quick deployment timelines — often bringing projects online within 18 months.
The EIA expects renewable energy to remain the dominant source of new generation capacity through at least next year. However, analysts warn that a potential Republican rollback of key provisions of the Inflation Reduction Act could slow renewable energy development beyond 2026.
Natural gas — another major energy source for data centers — has not kept pace. While production has risen, much of the increase has gone toward exports rather than domestic electricity generation. Between 2019 and 2024, gas use by power producers rose 20%, while exports jumped 140%.
Compounding the problem, new natural gas plants take about four years to complete, and global supply chain delays have created a backlog in turbine manufacturing. Some suppliers are now quoting delivery timelines of up to seven years, according to the International Energy Agency.
This combination of stalled gas capacity and political uncertainty around renewables has left data center developers scrambling to secure reliable power.
Although AI-driven facilities aren’t solely responsible for growing electricity demand — heavy industry has been similarly energy-hungry — artificial intelligence has become the most visible target. Public skepticism about AI’s societal impact remains high, with many workers viewing it as a threat to jobs rather than a productivity tool, according to a Pew Research Center survey.
As energy use climbs and utility bills potentially follow, analysts warn that consumer frustration could turn into a broader backlash against the AI industry’s rapid expansion.
