News > Solar can fight data-center fueled affordability crisis

Solar can fight data-center fueled affordability crisis

• Solar accessibility

March 19, 2026

Data center energy demand raising costs for everyone

Data centers are the backbone of modern digital services, managing the high-volume demand of modern technology, such as AI, streaming, and social media. But they come at a heavy cost. 

Power hungry data centers are putting immense pressure on our grid. Some data centers are so big that they could use as much electricity as a major city. To meet the demand, data centers require expensive infrastructure upgrades from the local utility companies. Unless state officials take action, you – not the tech company – are likely footing the bill. 

Communities across the country are raising the alarm about skyrocketing energy costs. In 2025 alone, utilities requested $29 billion dollars in rate hikes from American consumers. Electricity bills in Virginia, the world’s largest data center market, are predicted to increase up to 25% in high demand areas. Illinois has seen a 16% electricity rate hike, and Ohio has seen 12%. Texas, data centers are projected to account for 46% of Texas’ power load growth by 2031. 

Weak regulations on data centers can cause electric grids to be overwhelmed as utilities rush to keep up with energy demand. Some communities have seen rolling blackouts due to shortages of electricity supply.  At the same time, some data centers are even getting discounts on energy use from utility companies, while families and local businesses struggle to make ends meet.

How solar can help

The decision to build a data center should always be taken with the input and informed consent of the local community. But relying on expensive, polluting fossil fuels to boost local energy capacity will take us down the wrong path of increased energy costs, poor air quality, and a less-reliable grid. In communities that do decide to embrace data centers, local solar and battery storage must be part of the puzzle.

Solar is the cheapest, cleanest, and most reliable energy source to meet growing demand. It’s also the fastest to deploy and connect to the grid. When more solar panels are installed on more rooftops, the capacity of the entire grid grows. That benefits everyone: fewer blackouts on hot summer days, and less expensive infrastructure repairs in the long term. 

Virtual Power Plants (VPPs) may be the innovative, practical solution we need to meet data center demand. VPPs combine rooftop solar with battery storage in homes and businesses to link energy generation and distribution across a community. Instead of generating energy in one location, like a coal or gas plant, the aggregated “power plant” is spread across thousands of homes. 

VPPs can quickly deploy new energy capacity, and they lock in low energy prices for households with rooftop solar.  By switching away from costly and volatile fossil fuel generation, VPPs stabilize and lower prices for all ratepayers, not only the ones with solar and battery systems. And, because energy is produced close to where it’s used, it’s more reliable and efficient. 

With the right legislation, households can fill the energy gap. Rewiring America reported that it’s possible to meet 100% of projected data center energy demand with a combination of rooftop solar and battery storage. Plus, we can reduce peak demand – the amount of electricity needed on those hot summer days or cold winter mornings – by investing in proven energy-efficiency technology like heat pumps. Energy efficiency + expanded capacity = abundant, affordable energy for everyone. 

More solar is urgent everywhere, but especially in Virginia. Virginians are facing the brunt of the energy affordability crisis. Data centers in Virginia could almost double the state’s energy use in the next decade and cause Dominion’s residential bills to increase by more than $400 a year by 2040. A recent report shows that a VPP program in Virginia could meet the projected demand without increasing utility bills for households. VPPs also offer additional benefits, like more local jobs, reduced air pollution, lower impacts on natural habitats, and concentrated savings in low-income communities. 

Our energy system doesn’t have to be a win-lose scenario between technology companies and everyday ratepayers. But we need common-sense policies to ensure that data centers don’t dry up our energy supply – and our bank accounts. This legislative session, the following states are pursuing VPP-related bills that can help mitigate the load growth from data centers:

• Massachusetts
• New Jersey
• Michigan
• Virginia
• Pennsylvania
• West Virginia
• Minnesota
• New York