WASHINGTON — Major technology companies are increasingly turning to nuclear power and natural gas to meet soaring electricity demands from artificial intelligence and data centers, even as policymakers push for greater industry accountability over rising energy costs.
Google recently reached an agreement with Constellation Energy to increase electricity production at existing nuclear plants. The company also signed a deal with Black Hills Corp. to develop new natural gas generation for a planned data center in Wyoming.
Meanwhile, Amazon is advancing plans for a major data center campus in Homer City, Pennsylvania, where natural gas generation would replace a former coal-fired power facility.
The developments highlight the technology industry’s growing reliance on both conventional fuels and carbon-free energy sources to support expanding AI operations.
At the same time, lawmakers are considering new measures to protect consumers from the financial burden of data center expansion.
Sen. Ruben Gallego, D-Ariz., has proposed taxing data center revenues to fund community investments and workforce programs for employees displaced by artificial intelligence. His economic plan also calls for requiring data center operators to finance new power generation and grid improvements, even if planned projects are abandoned.
Utilities are taking similar steps. Duke Energy announced an agreement with Amazon, Google, Meta, Microsoft and other major technology companies to shield existing customers from data center-related expenses.
The agreement includes nonrefundable upfront payments for dedicated electrical infrastructure and special electricity rates for large energy users.
The emerging approach reflects a growing consensus: Technology companies driving unprecedented electricity demand should bear more of the costs of expanding the nation’s power infrastructure rather than passing those expenses to households and small businesses.
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