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Energy Suppliers Face Data Center, Public Trust Tests

Energy Suppliers Face Data Center, Public Trust Tests

newsweek.com 12.10.2026 16:23 7 views
Data center fears are growing across America, but industry leaders say better public understanding could unlock growth.

Say “data center” in many U.S. towns, and people start worrying about higher electricity bills and blackouts. Speakers at Newsweek’s Pillars of Stability event during Climate Week NYC 2026 spoke on stage saying that fear is misplaced, and it’s now preventing the growth that would support customers better. Alexis Crowell, general manager for the Americas at Axelera AI, believes knowledge is the answer.

"The more we can get that knowledge out there and help people understand what's really happening, the better it will be," she told Newsweek. Some of the responsibility sits with the industry. Aaron Bielenberg, senior vice president of energy strategy at data center developer QTS, says people need a clearer picture of what data centers will mean for them.

The financial impact is the crux of the pushback, yet the panelists said companies are footing the bill. Amazon is committed to “paying for the full cost of the energy infrastructure that we require and not having other customers, including residential customers, subsidize our growth,” Craig Sundstrom, head of energy and sustainability policy at Amazon Web Services, told Newsweek. In Cedar Rapids, Iowa, utility Alliant “has been able to freeze their bills”, he said, and Georgia Power has done similar, reducing rates for customers in June 2026 by about $50 annually.

Indiana Michigan Power says new revenue from data centers and other large customers could cut bills for customers, and a proposal is awaiting approval to freeze and then lower rates for residential consumers. Panelists framed the buildout as an overdue opportunity to modernize an aging system and build it better. In Mississippi, Entergy is reinvesting in upgrades expected to improve grid reliability by around 50% and cut outages by 50% for customers.

Beyond better energy, new infrastructure will also support the transition to clean energy solutions. Each new data center is built with sustainability in mind, from carbon-free concrete for buildings to more efficient chips, the experts explained. Projects have already failed in some states due to community pushback.

While frustrating, the industry has learned to engage with communities early, when sites are still being chosen. Now they “show up and listen, explain transparently what the plan is, and then listen to their needs,” Bielenberg said. The panelists each acknowledged that more needs to be done on the ground to support new data center rollout, and trust and transparency are essential if hyperscalers are to continue to power the growth that today’s world demands.

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