Data Center Power Play

How Clean Energy Can Meet Rising Electricity Demand While Delivering Climate and Health Benefits

Steve Clemmer, Maria Chavez, Samuel Dotson, James Gignac, Sandra Sattler, Lee Shaver

Published Jan 21, 2025

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Key Findings

The United States can meet electricity demand from data centers primarily with clean energy and simultaneously phase down fossil fuel use.
Data centers must be required to pay a fair share of the nearly $1 trillion in electricity costs attributable to them over the next 25 years.
The climate and health benefits of reducing fossil fuels far outweigh the costs of transitioning to clean energy.

Data centers are poised to reshape the energy landscape in the United States in the coming years. Enacting policies to decarbonize the US power sector will ensure the country can meet the projected growth in electricity demand with clean energy while saving $1.6 trillion from harmful climate and health costs over the next decade.

Unmitigated data center growth puts the public at risk of large cost increases, from higher utility bills to public health costs to climate impacts. Increased transparency, greater accountability, and better planning are essential to guarantee responsible growth of electricity demand from AI and avoid overbuilding the electricity system.

Policymakers and regulators at every level of governance must use their authority—and standing—to ensure data centers are powered by clean energy and protect ratepayers by requiring data center operators to pay their fair share of new electricity costs.

Citation

Clemmer, S., Maria Chavez, Samuel Dotson, James Gignac, Sandra Sattler, and Lee Shaver. 2026. Data Center Power Play. Union of Concerned Scientists. https://doi.org/10.47923/2026.16051

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