ANALYSIS: As Energy Costs Are Expected to Rise by Nearly $400 per Household, the U.S. Senate Must Protect Energy Supply Needed to Power Our Global Tech Edge
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Washington, D.C. — As utility bills surge across the country, America is facing a dual challenge: keeping household electricity bills affordable while powering the explosive growth of AI and data centers essential to U.S. competitiveness and national security. Renewable energy is the cheapest and most reliable way to meet this demand — yet the House Republican tax bill would cede the global AI race to China, cost us 400,000 clean energy jobs, and drive up utility costs.
By gutting the Inflation Reduction Act’s clean energy tax credits, the House proposal amounts to a full sledgehammer repeal of bipartisan investments that have slashed energy bills, created American jobs, and worked to meet the new energy demand.
- Repeal would raise energy costs for U.S. families by $110 as soon as next year — just as electric demand from new data centers is set to soar.
- Repeal would raise energy costs for U.S. families by $400 within a decade.
- Repealing just two of the tax credits – the 45Y (PTC) and 48E (ITC) – will contribute to energy bills increasing as high as 20%.
- The industrial sector would spend $14 billion more on energy costs in 2035.
- Repeal would cost 700,000 jobs in the next 10 years.
Data center construction reached an all-time high in 2023, with a 46% year-over-year increase. They are sending energy demand through the roof.
“The Senate now has a chance to consider basic economics: demand for electricity is soaring, and we need more affordable supply — not less,” said Climate Power executive director Lori Lodes. “Gutting clean energy incentives would drive up prices, destabilize the grid, and leave American families and businesses more vulnerable. If we can’t keep up with the demand for energy, we will lose the AI race to China.”
Below are the number of data centers per state, with more coming online:
[DataCenterMap.com, Accessed 5/16/25]