Big Tech Is Building Its Own Power aSo Can You

Big Tech Is Building Its Own Power and So Can You
The biggest companies in technology are not waiting for the grid to catch up. They are securing enormous amounts of power for their data centers years in advance. Microsoft has a planned 99-megawatt campus in San Jose. Amazon Web Services runs a 39-megawatt facility in Santa Clara and a 49-megawatt facility in Hayward. Developers like Prologis are planning hundreds of megawatts more.

How much power big tech is lining up
Data center developers had asked PG&E for about 15,000 megawatts of power by the end of 2025, with signed agreements reaching about 4,000 megawatts. Those signed agreements alone, running year-round, equal about 35 billion kilowatt-hours, or roughly 4.4 million homes' worth of electricity at 8,000 kilowatt-hours per home. Big tech understands something important: power is becoming one of the most valuable resources in the economy. Whoever secures reliable, affordable power first is in the strongest position.

Homeowners can follow the same playbook
Big tech secures power because it does not want to be at the mercy of rising prices and limited supply. Homeowners face the same risk. California electricity already averages about 30 cents per kilowatt-hour, and the California Energy Commission projects statewide demand could rise more than 50 percent by 2045. Homes with solar and batteries produce their own electricity, store it for the expensive evening hours, and send extra power back to the grid for compensation. In a small way, they are doing exactly what big tech is doing: locking in their own supply.

Which side of the meter?
As AI drives demand higher, every home ends up on one side of the meter. Buying from the grid means paying whatever it costs. Supplying the grid means earning credits and using your own power when prices are highest. Some homeowners do not love the idea of supplying power to a grid that serves data centers. But it beats being on the other side, buying from a grid that big tech is competing for.

No purchase or loan required
The biggest change in recent years is how homeowners get started. Qualifying homeowners can get solar and battery storage through third-party ownership programs without buying or financing equipment. Many agreements include maintenance and battery replacement for the term, a rate designed to come in below utility rates, and the ability to transfer to a new owner if the home sells. California is also recognizing the value of home batteries. SB 913 directs regulators to set a value for battery power sent to the grid during high demand.

The takeaway
Big tech is building its own power supply. Homeowners can too, with savings that can reach up to 40 percent compared with utility rates, depending on the home and program.

To find out if your home qualifies for a TPO solar and battery program, visit myhomesolution.org/california_public_utility_commissions