A new report from “Rewiring America” finds that U.S. households could provide enough capacity to meet 100 percent of the projected electricity demand growth from data centers, while cutting bills for families and strengthening the grid. (“Rewiring America” is an electrification nonprofit, focused on making American households the center of a clean, resilient energy future. It brings together utilities, policymakers, private sector partners, and community leaders to help accelerate that mission.)

The report, “Homegrown Energy: How household upgrades can meet 100 percent of data center demand growth,” shows how significant investment in heat pumps, rooftop solar, and home batteries could transform homes from passive energy consumers into active energy assets.

“Over the next five years, U.S. electricity demand is expected to climb by 128 GW, with new AI-driven data centers accounting for 93 GW of that growth,” said the report. “Rising demand and limited supply are already pushing prices higher. Utilities requested $29 billion in rate hikes this year alone.”

The report shows that “hyperscalers” can unlock the capacity they need for their own operations, and build a better energy future, by decreasing residential peak demand through direct investment in household upgrades. (“Hyperscalers” are large technology companies, such as Amazon (AWS), Google (Google Cloud), and Microsoft (Azure), that provide massive-scale cloud computing services, operating vast global networks of hyperscale data centers.)

– Heat pumps: By paying for heat pumps in select homes that currently rely on inefficient electric heating, cooling, and water heating, “hyperscalers” could meet one-third of their projected additional capacity needs.

– Rooftop solar + storage: Equipping households with suitable rooftops with solar + storage could generate more than enough clean electricity to meet all projected additional data center capacity needs.

Immediate investments in these solutions would accelerate the technological and economic pathways for an all-electric economy – more efficient, resilient, and affordable for households, while positioning the U.S. as a global leader in 21st-century industries.

The report finds that “hyperscalers” could secure grid capacity at costs similar to building new gas power plants by paying for part of the upfront costs of electric upgrades, such as installing rooftop solar + storage, or heat pumps in homes with electric resistance heating.

“Unlike new gas power plants, however, heat pumps deliver immediate household benefits: average household bill savings of $740 a year, total annual emissions reductions equal to taking six million cars off the road, and $2.3 billion in total annual health benefits from cleaner air,” said the report. “With a 50% discount, a heat pump would cost households about $9,000 (less than a typical furnace and central AC replacement), making upgrades a clear win for families and the grid alike. Plus, adding rooftop solar and storage could lower household energy bills by more than $1,000 a year, provide more energy resilience to power outages, and add resale value to homes.”

“Electrifying households is a direct path to meeting the growing power needs of hyperscale data centers while creating a more flexible, resilient, cost-effective grid for all,” said Ari Matusiak, CEO of “Rewiring America.”