AI’s energy demand drives $29B in US utility rate hikes, elicits complaint from UN

UN Secretary-General António Guterres called on major tech companies to transition to 100% sustainable energy to power their AI operations, warning that current energy demands could strain global capacity. The appeal comes as US utilities requested a record $29 billion in rate increases during the first half of 2025—double last year’s level—largely driven by surging data center energy needs that are being passed on to customers.

The big picture: AI’s explosive growth is creating an energy crisis that’s forcing difficult choices between technological advancement and environmental sustainability.

• Data center energy consumption is expected to double by 2030 to 945 terawatt-hours, with natural gas remaining the cheapest and most abundant power source.
• The world’s largest concentration of data centers operates within the PJM Interconnection grid network, which will release results from its annual power auction later today.

What they’re saying: Industry leaders acknowledge the tension between AI ambitions and energy realities.

• “AI can boost efficiency, innovation and resilience in energy systems, but it is also energy hungry,” Guterres said in New York.
• “Energy dominance means our tech guys can run full throttle,” said Toby Rice, CEO of natural gas producer EQT, speaking at Trump’s “Energy and Innovation Summit” in Pittsburgh last week.
• “The tech crowd, they care about cost, they care about reliability. But people still care about the carbon aspects,” Rice added, highlighting his company’s carbon-capture projects.

Current reality: Major tech companies are pursuing mixed approaches to address their carbon footprint.

• Amazon, Google, and Meta offset some emissions through credits and renewable energy programs, but these measures don’t fully address the scale of their growing energy demands.
• The shale gas industry is positioning itself as a key solution, with EQT announcing several new projects to meet tech sector demand.

Why this matters: The collision between AI growth and energy infrastructure is reshaping both industries, forcing companies to balance innovation speed with sustainability commitments while potentially driving up energy costs for consumers nationwide.