As a series of devastating winter storms has struck the U.S., one impact has been soaring energy prices. 

What's happening?

With Winter Storm Fern hitting the Mid-Atlantic states, wholesale electricity costs skyrocketed to over $1,000 per megawatt-hour, according to Gadget Review.

However, winter weather was not the only culprit behind the price explosion. Northern Virginia is home to the world's "densest cluster" of data centers, according to Gadget Review. When energy is at a premium, such as during the recent storm, local consumers have felt the true cost of data centers' massive energy consumption.

"This wasn't just another winter storm — it was a preview of what happens when 24/7 AI demand crashes into aging grid infrastructure," Alex Barrientos for Gadget Review wrote. 

"Northern Virginia's hyperscale campuses — powering everything from AWS [Amazon Web Services] to Microsoft Azure — transformed what should have been a manageable winter peak into a grid-straining crisis," Barrientos added. 

For many people looking for ways to lower their monthly energy costs, home solar can be a powerful solution. TCD partners like EnergySage can help homeowners save up to $10,000 on solar installation by curating bids from installers.  

Why is it important?

The issue of data centers' energy use driving up electricity costs has not been limited to the Mid-Atlantic states. According to Bloomberg, everyday consumers living near a data center have seen their monthly electricity costs jump by as much as 267% over the last five years. 

"They're going up and up," Kevin Stanley, a 57-year-old who lives off disability payments, said of his rising electricity bills, per Bloomberg. "You wonder, 'What is your breaking point?'"

What's being done about it?

With the number of data centers continuing to grow and massive new data center construction projects underway, the strain on the existing electrical grid is expected to increase, according to the Department of Energy.

Unless electricity production grows at the same rate as energy demand, prices will continue to increase. That means, for now, it is largely up to consumers to take action.  

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Smart upgrades that slash monthly energy bills 

Knowing where to start when going solar can feel overwhelming. But with these resources, you can be sure you'll be cutting your electricity bills the right way.

• EnergySage can help you save up to $10,000 on installations by curating competitive bids from local installers
• Not ready to spend upfront? 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 further benefit from the cost-saving benefits of home solar by pairing solar panels with energy-efficient electric appliances, such as heat pumps. For more information about heat-pump HVAC systems, check out his helpful site from Mitsubishi.

Additionally, the Palmetto Home app offers rewards that can net homeowners up to $5,000 in additional savings.

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.