U.S. weighs a clean energy standard for AI data centers

By Amara Osei

An NBC News exit poll found 56% of voters called AI and data centers a crucial or major factor in their 2026 congressional vote. Voters also passed more than 40 local measures restricting data centers, according to Stateline.

Climate Advisers director Matt Piotrowski argues in a Fortune commentary that federal and state lawmakers now face a choice between bans and rules that determine who pays for AI’s electricity without addressing how it is generated. His proposal pairs ratepayer protections with a phased clean energy standard for new data centers, aimed at lower household bills and cleaner air.

What is driving demand for gas power?

xAI has operated dozens of gas turbines across the state line in Southaven, Mississippi, to supply its Colossus 2 data center outside Memphis. The deployment has triggered lawsuits and complaints over air quality, according to E&E News, and more gas generation is coming.

Global Energy Monitor counted 189 GW of natural gas capacity tied to data centers in development as of mid-2026. About 17 GW was already under construction.

Piotrowski notes that gas offers AI operators reliable, around-the-clock power, but turbine shortages and equipment backlogs could delay or scrap projects. Those constraints give policymakers time to shape how most AI data centers get their power in the coming years.

Solar, batteries and wind account for more than 90% of planned U.S. capacity additions this year, according to the Energy Information Administration. Developers are racing to qualify for federal tax credits before they phase out, and Piotrowski warns that the clean mix may not hold without policy.

What does the U.S. policy gap look like?

President Trump’s Ratepayer Protection Pledge is voluntary, Piotrowski wrote. The Ratepayer Protection Act stalled in the Senate this fall and could return in the next Congress. It would shield consumers from higher bills but contains no clean energy requirement.

States have moved faster, Piotrowski said, imposing moratoriums and making data centers pay for grid upgrades. Few state rules tie data centers to clean power. He urges lawmakers at both levels to combine strong ratepayer protections with phased clean energy requirements for new data centers.

How do other countries compare?

• Ireland requires new data centers connecting to the grid to meet 80% of annual demand with new renewable energy built in Ireland, according to the Commission for Regulation of Utilities.
• Singapore requires applicants for new data center capacity to power at least 50% of proposed capacity with green energy, according to the Infocomm Media Development Authority.
• Japan offers subsidies covering up to 50% of investment costs to operators running data centers entirely on decarbonized electricity, according to Reuters.
• China requires 80% green power at newly built main data center hubs, while Rystad Energy forecasts national data center capacity will nearly double by the end of the decade.

These countries compete with the U.S. for AI investment and, in Piotrowski’s view, are already ahead.

What would a U.S. standard cost?

Wind and solar are competitively priced, can come online quickly and protect buyers from energy price swings, Piotrowski said. A Bank of America Securities analyst who considers gas the fastest way to secure power still calls solar “the lowest-cost marginal energy.”

BloombergNEF estimates that powering a 500-megawatt data center with on-site gas can cost upwards of $140 per megawatt-hour, substantially more than purchasing electricity at industrial grid rates. A phased standard would let developers buy clean power from the grid instead of building it all on site, keeping costs down without slowing construction, Piotrowski argues.

Amazon, Google, Meta and Microsoft signed about 80% of corporate renewable power contracts in 2025, according to S&P Global. Piotrowski calls the four companies natural allies for a standard that rewards investments they have already made.

Would a standard drive investment overseas?

Critics warn that a clean energy standard could push investment abroad to less regulated markets, Piotrowski wrote. He considers that risk smaller than it looks because China already requires clean power at new national computing hubs and India’s Gujarat state has its own clean power conditions.

A phased standard with compliance timelines and flexibility in how developers secure supply would give companies time to adapt, Piotrowski said. Ireland’s six-year compliance period offers one model for that transition.

Who bears the cost?

Paired with cost protections, a clean energy standard would keep data center costs off electricity bills, Piotrowski said. The timing matters because the Energy Information Administration expects residential electricity prices to rise nearly 5% this year. The standard would also deliver cleaner air for neighborhoods such as those outside Memphis, he said.

Piotrowski calls on Congress and state governments to phase in clean energy requirements for new large data centers, prioritize additional clean generation, account for grid reliability and enforce safeguards against shifting infrastructure costs to consumers. He says the combination could let the U.S. pursue technological leadership while building an affordable and sustainable electricity system.

Piotrowski wrote: “The U.S. leads the global AI race, and AI infrastructure development will remain a major source of electricity demand. Lawmakers have written half a policy. It’s time to finish it.”