As AI data centers sprout up, concerns are mounting over where the energy to power them comes from, and how to pay for it.
US-regulated utilities asked for a record $29 billion in rate increases in the first half of 2025 alone, double last year’s level, essentially passing the cost on to customers. The next datapoint will come later today when the country’s largest grid network, PJM Interconnection — which also hosts the world’s largest concentration of data centers — releases the results of its annual power auction.
The UN’s secretary general on Tuesday called on big tech companies to move to 100% sustainable energy to fuel their AI ambitions. “AI can boost efficiency, innovation and resilience in energy systems, but it is also energy hungry,” António Guterres said in New York.
Amazon, Google, and Meta offset some of their carbon emissions through credits or other programs and include renewable energy in their power mix. But with data-center consumption expected to double by 2030 to 945 terawatt-hours, the cheapest and most plentiful source is natural gas. That was clear last week in Pittsburgh, where Trump headlined an “Energy and Innovation Summit” in the heart of shale country. Toby Rice, CEO of producer EQT, was on hand to announce several new projects.
“Energy dominance means our tech guys can run full throttle,” Rice said. “The tech crowd, they care about cost, they care about reliability. But people still care about the carbon aspects,” he said, noting EQT’s carbon-capture projects.