In the race to dominate artificial intelligence, the nation's biggest tech companies are building sprawling data centers that are hungry for power. But the progress comes at a price: skyrocketing electric bills, especially throughout the northeastern United States.

What's happening?

As CNN reported, everyday Americans are starting to feel the pinch from higher energy bills. Lawmakers led by Sen. Elizabeth Warren have pressed companies such as Google, Microsoft, Amazon, and Meta on how their energy-intensive infrastructure is affecting average consumers. 

Tech firms recently announced new pledges to cover portions of their electricity costs but fell short of fully ensuring that families won't end up footing the bill.

"If these companies are serious about paying their fair share, at a minimum they'd be more transparent about their data centers' operations instead of forcing local communities to sign NDAs," Warren said of nondisclosure agreements in a statement, per CNN.

Despite the uncertainty surrounding how much tech companies will contribute to rising energy costs, homeowners can save a lot on electric bills by going solar. TCD can help connect you with trusted partners like EnergySage and save up to $10,000 on solar installations.

Why are these secret contracts concerning?

If utility and tech companies aren't forthcoming about who is paying for the increase in energy use, it's not very reassuring to consumers that they won't be bearing the burden. Data centers now draw a growing share of U.S. electricity, with some forecasts suggesting they could make up as much as 12% of national consumption by 2028 — a spike fueled by the soaring needs of AI applications, per Data Center Dynamics.

As millions of new AI-powered services come online, the strain on regional grids has resulted in major surges in electricity costs across states, including Maryland, New Jersey, Virginia, and the District of Columbia. This has prompted grid operators and regulators to reevaluate planning capacity.

The environmental costs of powering hundreds of data centers are mounting, too. Large facilities consume electricity equivalent to that of small cities and require vast cooling systems that also draw on water and carbon-intensive energy sources, per Discover Magazine.

What's being done to lower energy prices?

Tech executives insist they want to be part of the solution. For instance, Microsoft has pledged to pay higher utility rates and work with power providers to expand capacity without unduly burdening other customers. 

In January, several northeastern governors joined the Trump administration in calling on PJM Interconnection — the nation's largest electric grid operator — to launch an emergency power auction. The proposal would require major tech companies to enter into 15-year contracts for the electricity needed to power their rapidly expanding data centers.

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But consumers don't have to put up with soaring energy costs. For homeowners wanting to cut ties with their utility company or at least reduce their bill, going solar could be a wise decision.

Smart upgrades that slash monthly bills

These resources can help you get started on your journey to energy independence. 

• EnergySage can help you save up to $10,000 on installations by curating competitive bids from local installers 
• Not ready to spend up front? Palmetto's $0-down LightReach solar leasing program can lower your utility rate by up to 20%
• TCD's Solar Explorer makes it easy to access exclusive offers from preferred partners 

Homeowners can also pair solar with energy-efficient appliances, such as heat pumps, to save even more on electricity costs. Mitsubishi, a TCD partner, can help you lock in more savings by connecting you with reliable installers to find the best system for your needs and budget. 

Finally, downloading the Palmetto Home app can help consumers unlock up to $5,000 in rewards to upgrade their homes just by making simple changes, like reducing energy use.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.