Energy Suppliers Face Data Center, Public Trust Tests
Data center fears are growing across America, but industry leaders say better public understanding could unlock growth.
At Newsweek's Pillars of Stability event during Climate Week NYC 2026, speakers discussed the impact of data centers on energy bills and public trust. Alexis Crowell, general manager for the Americas at Axelera AI, emphasized that dispelling fear is crucial to allowing growth that benefits customers. Aaron Bielenberg, senior vice president of energy strategy at data center developer QTS, stated that the industry must provide a clearer picture of the implications of data centers on residents.
The financial burden is a significant concern, but panelists noted that companies like Amazon are willing to cover the costs. Craig Sundstrom, head of energy and sustainability policy at Amazon Web Services, affirmed that Amazon will pay for the entire energy infrastructure required without burdening other customers. Bielenberg elaborated that utility companies, such as Alliant in Cedar Rapids, Iowa, and Georgia Power, have successfully frozen or reduced rates for customers due to the presence of data centers.
Indiana Michigan Power suggested that new revenue from data centers and large customers could ultimately lower residential bills. The panelists framed the data center expansion as a chance to modernize the aging energy system and enhance its reliability. Entergy in Mississippi is investing in upgrades aimed at improving grid reliability by approximately 50% and reducing outages by 50%.
New infrastructure will also facilitate the transition to clean energy solutions, noted Craig Sundstrom. Each new data center is built with sustainability in mind, incorporating carbon-free concrete and efficient chips. However, some projects have faltered due to community opposition. The industry has learned to engage with communities early in the planning stages, showing transparency and willingness to address their needs.
Panelists agreed that more ground-level efforts are necessary to foster trust and transparency, which are vital for hyperscalers to continue powering growth in today's world.
Written by urgent.news from Newsweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
