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Construction of new data centers in the US fell for the first time since 2020 despite soaring demand for artificial intelligence computing capacity, as developers face delays in permitting, zoning and power procurement.
President Donald Trump urged tech giants to create their own power sources for data centers. Big Tech is already shifting to private energy solutions.
During his State of the Union address, the president said tech companies would do more to limit the impact their data centers have on surrounding communities. is a senior science reporter covering energy and the environment with more than a decade of experience.
Data centers are renowned energy vipers. But some are transitioning into energy powerhouses that are heating local cities.
"What Google is doing is ensuring that when we show up, we aren't putting additional costs on other ratepayers," its head of data center energy told CNBC.
President Trump, during his State of the Union address, made a pledge to protect Americans from any rising energy costs from data centers.
Data centers can increase energy costs in two main ways. They have to be connected to the grid, which can require extra transmission lines, new power generation resources and other infrastructure investments. Then once they come online, they can drive up regional electricity prices through added demand.
The loans are designed to support a slew of new power generation and transmission grid upgrades as Georgia sees an influx of energy-hungry data centers.
Indiana Michigan Power will take the unusual step of reducing electric rates, but only in Indiana where big data centers are driving up power demand.
Amazon announces a $12 billion investment in three Shreveport-area data centers, promising 540 high-paying jobs and no added utility costs for Louisiana ratepayers.
As tech giants find creative ways to generate electricity, they’re building a glut of new fossil fuel projects.