Building Data Centers that Benefit Everyone

Building Data Centers that Benefit Everyone

An “obligation to pay for their own power needs.” That’s the message President Trump sent tech leaders during his State of the Union. It stems from a growing concern across the country: Who’s paying for the rapid expansion of data centers? We can’t ignore the benefits of artificial intelligence, but neither can companies ignore growing sentiment that they must pay their fair share of increasing energy prices. It’s good to see companies come together at the White House to make a general pledge. To build off this momentum, there are specific commitments companies should make to overcome growing distrust and get consumers the protections – and even lower rates – they deserve. 

Electricity rates have been rising faster than inflation, and many Americans fear new data center developments are driving up bills. In a November 2025 Consumer Reports nationally representative survey, 78% of Americans reported being at least somewhat concerned that their household’s energy bills will increase because of new data centers being built across the country. Only four percent were not concerned at all. 

Those fears are not unfounded. Recent analyses show data center demand is projected to grow dramatically, straining generation and transmission systems in multiple regions. In states like Virginia—home to the world’s largest concentration of data centers—forecasts suggest electricity demand could double within a decade, with data centers as the primary driver.

But it’s not just consumers who are growing concerned. In addition to the president using his largest speech of the year to deliver this message, government leaders at every level are making their apprehension clear. Newly-elected Virginia Governor Abigail Spanberger campaigned on data centers “paying their own way and their fair share.” Members of Congress have introduced bipartisan legislation to stop data centers from driving up electricity prices. And local officials are responding to growing pressure against these projects, including rethinking tax incentives and zoning rules. 

In fact, we’re quickly seeing these reservations move beyond rhetoric to having a real impact on data centers being built. In 2025, four times as many plans for data centers were ended in face of local pressure compared to the year before. “Moratorium” is a word being used more often, including in Denver, where the mayor announced a halt to all data center considerations while they assess the benefits. 

In this environment — where decisions today will not only impact our future power grid but the billions of dollars at stake to win the AI race — companies can’t afford to let distrust fester further. Instead, making meaningful commitments to transparency and enforceable safeguards can help build public support that will remove barriers to the investments depending on these projects. 

But what do credible commitments look like? Consumer Reports has spent decades working with both energy experts and individuals to better understand consumers' concerns and needs. We believe robust commitment should include at least the following:

Transparency

Data center developers and utilities must meet clear disclosure standards regarding projected load, required infrastructure, and cost allocation. Claims that infrastructure benefits everyone should be supported by evidence. Independent watchdogs must be able to verify that costs are fairly allocated.

Flexibility to Better Use Existing Assets

Moving more electricity through existing infrastructure would mean all of us pay less. Data centers should incorporate demand flexibility to ease strain on the grid and reduce the need for costly new infrastructure. 

Responsibility for New Grid Infrastructure 

If new power plants, transmission lines, substations, or other upgrades are built primarily to serve data centers, developers should bear the full costs and risks associated with that infrastructure. Developers should actively support equitable cost allocation frameworks and rate structures.

Agreements Addressing Stranded Asset Risks

Developers should enter binding agreements to pay for the infrastructure built to serve them, regardless of whether they ultimately use it at projected levels. If a data center closes or scales back operations, other customers should not be left covering stranded costs.

Lead Efforts to Reduce Rates

Communities have made clear that “do no harm” is the baseline, not the only expectation. It’s good to see the White House calling on companies to not hurt our wallets. Trust in data centers will grow even stronger when they also lead the sustained changes to reduce rates. Companies can help fund strategic grid upgrades that unlock existing capacity. They can support consumer-facing technologies, such as distributed energy resources, heat pumps, and battery storage, that reduce peak demand and avoid expensive new infrastructure. They can advocate for and procure least-cost clean energy solutions that stabilize prices over time. Tech has the capital, scale, and influence to drive down system-wide cost and earn a reputation as good neighbors across the country. 

Consumer Reports welcomes the opportunity to work directly with data center builders to develop and verify their commitments, making clear that your company’s plans will also help the public good. Because across politics and the country, the message is clear: People want accountability. 

Now is the time for companies to move beyond generic statements and truly build the public trust they need. Together, we can create a future of data centers that aren’t treated as a national concern, but trusted as an advancement that benefits both companies and consumers. 

Would also add that, in some cases, water use for cooling can strain local fresh water resources.

Like
Reply

"Do no harm is the baseline, not the only expectation" is such an important distinction. Too many companies treat not making things worse as some kind of achievement. The bar should be higher than that, especially when you're talking about people's electricity bills. Do you think the companies making these pledges actually understand that or are they still in damage control mode?

More fossil fuel plants are going to exacerbate climate change. The form of power generation matters.

Thanks for this great thought piece Philip Radford

Like
Reply

To view or add a comment, sign in

More articles by Philip Radford

  • Stop Scammers from Ruining 2026

    Every new year is an opportunity for us to make the next 12 months better than the last, from healthier habits to…

    8 Comments

Explore content categories