Why Solar Energy Could Be the Solution to Powering America’s Data Centers

Last year, a colleague of mine asked the data center facilities manager for a major bank what it would cost them if one of their data centers lost power for a day. The answer?

“We’d lose about $100,000 per minute we’re offline.”

That is a stark reminder of how vital data has become to modern infrastructure.

From AI to cloud computing, data centers have become indispensable to our daily lives – and to commerce – worldwide.

But there is no denying that they are also voracious consumers of electricity.

As I write this in 2025, there are more than 5,426 data centers operating in the U.S., and their collective energy demand is projected to reach a staggering 130 gigawatts by 2030. For context, that is nearly 12% of the nation’s total electricity consumption. The increasing demands of the information age have led to exponential growth in data center construction nationwide, which is fantastic for expanding a whole new level of infrastructure and creating jobs. However, that explosive growth is straining the national power grid in alarming ways.

So, the question for the general contractors building them, the developers investing in them, and the facilities managers who run them is no longer whether to integrate renewable energy into your data center plans – but how.

The obvious answer is solar energy, particularly in the form of utility-scale grids that can be integrated into the existing U.S. energy infrastructure, or self-contained microgrids for individual site use. Solar offers a cost-effective, scalable, and lower-risk alternative to nuclear energy, which is the other electricity solution gaining commercial interest for data centers. Over the last couple of years, Microsoft, Amazon, Google, and Meta have all either secured contracts, planned projects, or considered small modular reactors (SMRs) to power their data center needs.

The Case for Solar: Proven, Scalable, and Grid-Ready

The Kelso Solar Project in Scott County, Missouri, is a prime example of how solar can meet the energy demands of hyperscale data operations. Developed by Arevon Energy in partnership with Meta, the $500 million project will deliver 430 megawatts of clean power – more than enough to support Meta’s regional operations – with 100% renewable energy. Kelso isn’t a pilot program or a proof of concept; it’s a utility-scale deployment that will boost Missouri’s solar capacity by nearly 50%.

Contrast this with nuclear energy, which, while carbon-free, is fraught with long lead times, regulatory hurdles, and escalating costs. The average SMR project will cost anywhere from a $50 million microreactor to $3 billion. The highly touted NuScale Power SMR in Utah, was originally projected to cost less than $3,000 per KWh. Experts, however, estimate that it would have come in at closer to $6,800 per KWh, a price that the Institute for Energy Economics and Financial Analysis (IEEFA) called “eye-popping,” and contributed to the project’s demise. And some industry analysts put the power demands of the data industry at 130 GW by 2030 – a usage rate that would require one full-size nuclear power plant per GW to meet.

In a sector where savings, speed, and scalability are paramount, solar wins on all counts.

Why Data Center Developers Should Care

For those involved in the planning, construction, and operation of data centers, the implications are clear. Solar energy should be considered part of your strategic asset planning. Here’s why:

• Predictable Costs: Solar power is a proven renewable resource, is on solid footing for microgrids that have proven their ability to meet large-scale power needs, and purchase agreements (PPAs) can offer long-term price stability, shielding operators from pricing volatility.
• Grid Resilience: Solar microgrids can reduce reliance on overburdened regional grids, minimizing downtime and improving energy security.
• Regulatory Alignment: Federal and state incentives for solar deployment are robust and growing, while nuclear power remains politically and financially contentious.
• Speed to Market: Solar farms can be permitted and constructed in a fraction of the time it takes to build a nuclear facility.
• Community Impact: Projects like Kelso generate local jobs, tax revenue, and educational funding, which creates goodwill and reduces opposition.

A Brighter Path Forward?

Continuing as we have been, without exploring the possibilities of renewable energy, will destabilize an already outdated and overburdened electrical grid. The only question is how quickly demand will outstrip supply. Solar power – especially when paired with storage and smart grid technologies – can meet the moment in ways few other alternatives can.

So, what are the next steps? By prioritizing data center sites near abundant renewable resources, or investing in on-site generation, you can create and control your own electrical infrastructure. Contractors and engineers should seek partnerships with solar providers early in the design phase. And existing facilities managers can advocate for energy strategies that balance performance with sustainability.

The energy needs of data centers isn’t a “someday” problem, it’s a present-day imperative. Utilizing solar power, with its proven track record and accelerating momentum, could prove to be the most pragmatic and powerful tool we have.