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New report lays out surprising solution to data centers' massive energy problems: 'Rising electricity prices are squeezing American households'

"Why don't we try to make that as beneficial as possible to the communities where they will be built?"

Home solar is a proven safeguard against surging electricity rates. If the technology were widely installed, the added electricity per household would add up significantly.

Photo Credit: iStock

Home solar is a proven safeguard against surging electricity rates. If the technology were widely installed, the added electricity per household would add up significantly, according to Rewiring America. 

The experts' most notable recommendation is that tech companies should foot some of the bill for panels, battery backups, and energy-saving heat pumps for homes well-suited for the tech because they would free up power for their own computing. 

"We saw this trend happening with data centers needing capacity on the grid and thought by upgrading households, we can actually create a significant amount of capacity," Rewiring America's research and data science head Cora Wyent told Fast Company. 

At issue is the increasing number of computing hubs being built to process artificial intelligence, chatbots, and all the other computing we do daily. Data Center Map located 4,304 such facilities across the country, and Goldman Sachs estimated that data centers' power demand will increase 165% by 2030. 


As a result, "rising electricity prices are squeezing American households," Rewiring America reported, citing lagging wages and expired federal clean energy incentives as factors. To compensate, some of the tech giants have invested in solar farms to provide sustainable energy at scale. 

Elsewhere, electricity suppliers are turning to coal and natural gas for the juice, but those fuels create byproduct air pollution that is a burden to community health at every stage of life, according to the American Lung Association. 

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EnergySage is another trusted partner of the Solar Explorer. Its experts can help you find incentives, secure vetted quotes, and receive installer recommendations when buying panels. EnergySage has reported that panels cost $30,000 on average to install outright, making leasing appealing to homeowners on a budget. 

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Rewiring America suggested that the tech companies pay 30% of the upfront cost, though. If done at scale, the outlet says the price of the arrays would drop by 40%, making the overall project at parity with building a gas plant, and much more affordable for customers. 

What's more, helping homes update aging HVACs with efficient heat pumps would help to free up even more grid power, Rewiring America added. Pairing the panels with efficient appliances adds to the savings, and TCD's HVAC Explorer will get you started on a heat pump upgrade that can save you up to 50% on your heating and cooling costs. 

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Additionally, Palmetto's free Home app makes it easy to unlock up to $5,000 in rewards that you can use for improvements at your house β€” all with some simple, everyday actions.

Rewiring America wrote that the scaled per-household work could be completed faster than building dedicated power plants β€”  in months instead of years β€” and win over much-needed homeowner sympathy.

"There's been some recent polling showing that data centers are not very popular," Wyent told Fast Company. "Our perspective is that data centers are going to be built. So why don't we try to make that as beneficial as possible to the communities where they will be built?"

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