Americans are concerned about the rise in electricity prices due to AI - ForkLog: cryptocurrencies, AI, singularity, future

# Americans are concerned about the rise in electricity prices due to AI.

80% of electricity consumers in America are concerned about the impact of data centers on their utility bills. This is evidenced by the results of a study by Sunrun.

A survey among 1,000 American homeowners showed: distrust in traditional energy companies and their ability to cope with the country's rising electricity demands is increasing. Many are concerned about rising rates, more frequent outages, and the energy system's unpreparedness for increasing loads.

Many are already feeling the instability:

• 81% experienced at least one outage in the past year;
• 60% — up to three disconnections during the same period.

87% reported consequences: spoiled food, loss of income, problems with medical equipment.

Renewable Energy Sources

According to the data from the U.S. Energy Information Administration (EIA), the demand for electricity in America has remained stable for over 10 years.

In the past five years, commercial users, including data centers and industrial enterprises, have become more active in consuming energy. The annual rise was 2.6% and 2.1%, respectively.

Meanwhile, the use of electricity in households has risen by 0.7% over the year.

Electricity consumption since 1990. Source: EIA. Today, data centers consume about 4% of electricity in the USA — more than double compared to 2018. According to forecasts from the Lawrence Berkeley National Laboratory, by 2028, consumption will rise from 6.7% to 12%.

The rise of new capacities in solar and wind energy, as well as the implementation of industrial battery systems, has allowed for the fulfillment of growing demand.

The EIA expects that renewable energy sources will dominate new generating capacity for at least the next year. This trend could continue even after 2026, but experts predict that the repeal of key provisions of the Inflation Reduction Act by Republicans will restrain growth.

Natural gas

Another energy source - natural gas - has not met expectations. Although production is rising, the majority of new volumes are directed towards export rather than the domestic market.

The construction of new natural gas power plants will take longer than planned. Typically, it takes about four years to launch such facilities, but the turbine shortage has worsened the situation — manufacturers warn that timelines may stretch to seven years.

The problem is there

The slow development of gas infrastructure combined with the limitations of renewable energy sources has put data center owners in a difficult position.

According to Pew Research, most respondents feel anxiety about the development of AI rather than inspiration. Massive layoffs only amplify concerns and distrust towards the technology.

It is worth noting that in July 2024, Bernstein Research predicted a shortage of electricity if the growth rate of demand from data centers for AI continues.