With data consumption surging and artificial intelligence applications requiring massive computing power, U.S. data centre owners are pressing the Treasury Department to maintain renewable energy subsidy rules. They argue that changes in subsidy policies could disrupt their transition to cleaner energy sources, increasing operational costs and carbon emissions.
Treasury’s Subsidy Review Sparks Debate
The U.S. Treasury is reviewing rules under the Inflation Reduction Act (IRA), particularly how tax credits and subsidies for renewable energy projects are applied. Data centre operators worry that narrowing eligibility or reducing subsidies could stall investments in solar, wind, and battery storage projects critical to their energy supply.
Data Centres as Major Energy Consumers
Data centres already consume nearly 4% of U.S. electricity, a figure projected to rise sharply as AI, cloud computing, and streaming services expand. Industry leaders warn that without continued incentives, reliance on fossil fuels could intensify, undermining both corporate sustainability goals and national climate commitments.
Industry Push for Policy Stability
Executives from major tech companies, including cloud and colocation providers, have emphasized the need for regulatory certainty. They stress that long-term renewable energy contracts and investments depend on stable federal subsidy frameworks, without which project financing could face significant hurdles.
Climate Goals and Economic Growth at Stake
Advocates argue that cutting subsidies would not only slow the clean energy transition but also weaken U.S. competitiveness in the global digital economy. They insist that green energy incentives are essential to balancing surging digital infrastructure growth with national climate objectives.