Artificial Intelligence is Slated to Drive Up Electricity Costs

• 06 Aug, 2025
• Solar energy news

As great as they can be, those AI chatbots might be the reason your electricity bill is going up. Artificial intelligence technology is continuing to grow by the day, and it requires more and more energy to keep up with the output. 

AI data centers use a staggering amount of energy, and now, the government is warning that electricity costs could explode in the coming years as a result. This article offers details on concerns about energy prices and AI usage, how AI data centers work, as well as what you can do to control your own utility bills. 

New White House Report Warns Of Rising Electricity Costs

A July 2025 study conducted by the White House Council of Economic Advisers states that AI data centers in the U.S. are outpacing the supply of energy. Specifically, the study asserts that by 2030, AI data centers will consume more energy than it takes to produce aluminum, steel, and other manufactured goods that require substantial energy. In just 5 years, electricity costs could rise by as much as 58% if the United States can’t keep up with the necessary energy production levels to fuel AI usage. 

AI Data Centers and Energy Usage

AI data centers require massive amounts of energy to operate. In some cases, this could be up to 10 times more power than regular data centers. AI data centers differ from regular data centers in a few key ways.

Hardware

AI data centers use more GPUs than CPUs, given that GPUs are better for graphics rendering and machine learning. They also require more high-capacity RAM to manage the large datasets.

Cooling requirements

The hardware used for AI and LLMs generate a significant amount of heat. As such, more advanced cooling systems are needed in AI data centers to function. These cooling systems often use a substantial amount of water, which could stress areas with an already restricted water supply. 

Storage needs

AI data centers must accommodate an incredibly high throughput of data and information. They need low latency and oversized capacity to manage the vast amounts of data, making them more complex and expensive than regular data storage. 

Current federal policy supports the fast-tracking of AI data center construction in the near future. A key element will be finding sustainable, renewable sources of energy to meet the demand. 

How to Drive Down Your Energy Costs

You might not be operating an AI data center in your home, but you’re definitely using electricity and thus, could likely stand to have your energy bills lowered by switching to solar panels. Residential solar systems are not only better for the environment, but better for your wallet since you can generate your own power and sell what you don’t use back to the grid for even more savings. Don’t let the high costs of AI increase your energy costs. Contact us today to see how we can future-proof your home with solar technology.