On-Site Solar Benefits Data Centers
In many areas across the U.S., local electricity distribution networks and power grids are experiencing significant stress. The construction of large energy-consuming facilities, such as artificial intelligence-focused data centers, is surging nationwide, resulting in increased electricity demand that surpasses historical trends. Some local electric utilities are struggling to provide enough power to meet the needs of new or expanding data centers. An increasingly attractive option in this strained energy environment is solar power, in particular on-site solar systems, which can deliver sustainable benefits that “keep on giving” throughout the lifecycle of a data center.
On-Site Commercial Solar Advantages
Here are some of the key reasons that data centers and other energy-intensive projects increasingly use on-site solar power as a part of their energy generation mix:
- Reduce overall energy costs while locking in highly competitive pricing. Fixed pricing is a valuable hedge against inflation, providing predictable operating costs that can provide budget stability and support longer-term budgeting and planning.
- Reduce environmental impact and improve sustainability while delivering greater energy independence and insulation from market disruptions. Data centers are often a company’s single largest energy consumption center and the least “green” element of their infrastructure. Facility owners can benefit from the value of the on-site renewable energy credits (RECs) generated by the on-site solar systems.
- Increase investment in the community. Visibly deploy renewable energy systems as a clear demonstration of a commitment to reducing carbon footprints. Solar arrays on the property, whether ground, rooftop, or canopy mounts, serve as “advertisements” and may gain positive attention from news media and be featured in public relations and ongoing marketing efforts.
U.S. Electric Demand is Growing – Data Centers Are Significant Consumers
The U.S. Energy Information Administration (EIA) estimates as of May 2025 that as “a result of growing U.S. demand for electricity, especially in the commercial and industrial sectors…U.S. electric power sector will generate 2% more power in 2025 compared with 2024 — an increase of 100 billion kilowatt hours (kWh)—and then grow by 1%” in 2026.
As of March 2025, The American Clean Power Association (ACP) and S&P Global Commodity Insights project that “The US appears to be set for record electricity demand growth over the next decade” such that “between 2024 and 2040, electricity demand in the US is expected to grow by 35-50% driven by a combination of underlying economic growth, large industrial loads, like datacenters and manufacturing, and the electrification of transport and heating.”
Data centers are a significant part of this rising electricity demand. Lawrence Berkeley National Laboratory’s 2024 Report on U.S. Data Center Energy Use finds that data centers consumed about 4.4% of total U.S. electricity in 2023 and are expected to consume approximately 6.7 to 12% of total U.S. electricity by 2028.
Renewable Energy Production is Rising and Solar Generation is the Largest Boost
Renewable energy generation is growing to meet this increasing demand, and solar production is providing the largest part of this dynamic shift, noted in February 2025 by EIA (see graphic below). In 2024, renewable energy accounted for approximately 9% of the overall U.S. energy supply. That’s equivalent to 9% of the industrial and 3% of the commercial electricity supply!
The response from the commercial solar industry to rising U.S. energy demand has been record-breaking: the U.S. installed 50 gigawatts of new solar capacity in 2024, the largest single year of new capacity added to the grid by any energy technology in over two decades. According to the U.S. Solar Market Insight 2024 Year in Review report released in March 2025 by SEIA and Wood Mackenzie, solar and storage account for 84% of all new electric generating capacity added to the grid in 2024. EIA forecasts that U.S. solar generation will continue to provide the largest boost to electricity generation, increasing by 34% in 2025 and 18% in 2026.
Integrate Solar Generation into Data Centers
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Core Development Group specializes in designing and building on-site solar energy generation systems and can help identify customized solutions for onsite generation. They help businesses navigate the entire solar process from start to finish, encompassing engineering, permitting, incentives, construction, installation, and interconnection of the commercial solar system. The process begins with a consultation to evaluate energy usage, electricity behavior, and potential upgrades.
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