AI’s Energy Appetite and the Politics of Energy Demands

Today we’re digging into the energy demands of artificial intelligence and the political pressure it’s creating. Senate Democrats are calling out Big Tech over the skyrocketing electricity consumption of data centers powering AI, which makes this not just a tech topic, but a conversation about consumer costs, infrastructure, and the politics of energy.

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• Senate Democrats Press Big Tech on the Cost of AI’s Soaring Energy Demands

About the author

• Kristina Moore

Transcript

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Host 1

Welcome to Womble Perspectives! Today we’re digging into the energy demands of artificial intelligence and the political pressure it’s creating. Senate Democrats are calling out Big Tech over the skyrocketing electricity consumption of data centers powering AI, which makes this not just a tech topic, but a conversation about consumer costs, infrastructure, and the politics of energy.

Host 2

Senators Richard Blumenthal, Elizabeth Warren, and Chris Van Hollen have sent letters to major tech companies and data center operators. In these letters, they’re asking for details on electricity usage, the impact on consumer utility bills, and future growth plans. The concern? That data centers are driving up power costs for everyday Americans.

Host 1

And the numbers back that up. The Energy Information Administration reports that the average American electricity bill jumped seven percent between September 2024 and September 2025. The senators argue that families are essentially subsidizing trillion-dollar tech companies through these price hikes. And their message is clear: data centers should pay more upfront for grid upgrades and future energy needs.

Host 2

That’s a strong statement, and it taps into a broader political strategy. Democrats see rising electricity prices as a winning issue heading into the 2026 elections. They’re framing this as consumer protection, making sure Big Tech doesn’t pass its massive energy costs onto households.

Host 1

Let’s talk scale for a second. Data centers already account for more than four percent of the nation’s annual electricity consumption—about 183 terawatt-hours. By 2030, that’s projected to grow by 133 percent to 426 TWh. To put that in perspective, a single AI hyperscale data center can use as much electricity as 100,000 homes. Some of the mega-centers under construction will consume as much power as two million households.

Host 2

And it’s not evenly spread across the country. States like Virginia, North Dakota, Nebraska, Iowa, and Oregon are seeing data center power consumption far above the national average, creating strain on local grids. But there’s also a flip side. These centers also offer economic benefits as well. Benefits like construction jobs, tax revenue, and the enablement of the digital services businesses rely on.

Host 1

And businesses are leaning into AI hard. A Stanford report found that 78 percent of U.S. companies used AI in 2024, up from 55 percent the year before. So while the energy footprint is massive, the demand for AI-driven solutions isn’t slowing down. Which makes this a complex issue of balancing innovation with sustainability and consumer protection.

Host 2

And politically, this inquiry matters even if the senators can’t compel responses right now. They’re in the minority, so they can’t issue subpoenas, but reputational pressure is powerful. Plus, if Congress flips, Democrats could gain the authority to dig deeper. This is likely to be a campaign talking point in 2026, so companies should pay attention.

Host 1

The bottom line: AI is transforming industries, but it’s also reshaping our energy landscape. As demand grows, so will scrutiny—from regulators, lawmakers, and consumers. 

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