Washington, D.C. — A new analysis 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.

The report, Homegrown Energy: How household upgrades can meet 100 percent of data center demand growth, shows how rapid 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. 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 — and build a better energy future — by decreasing residential peak demand through direct investment in household upgrades:

• 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 and storage could generate more than enough clean electricity to meet all projected additional data center capacity needs.

• System transformation: 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 like installing rooftop solar and 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. 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. “The household doesn’t have to be a passive energy consumer, at the whim of rising costs. Instead, it can be the hero and, with smart investment, the foundation of a more reliable and affordable energy future.”

You can read the report in its entirety here.