Increased energy demand counteracts Trump's climate policy restrictions, according to APG's infrastructure division.
The Trump administration's policies have significantly hindered the growth of renewable energy in the U.S., primarily through the repeal or severe restriction of clean energy tax credits, executive orders blocking renewable projects, and tariffs that increased costs for renewable energy infrastructure.
These actions have caused reductions in projected renewable capacity additions, such as a 62% estimated drop in new clean energy projects over the next decade, and increased electricity costs in some states by hundreds of dollars annually.
Regarding data center demand, although specific data on this sector is not detailed, the overall impact on renewables influences data center operations indirectly. Data centers are heavy electricity consumers often seeking renewable energy sources for sustainability goals. The Trump administration’s rollback of incentives and increased regulatory uncertainty likely slowed data centers’ access to new clean energy projects, raising energy costs and complicating their renewable procurement strategies.
On the role of local state policies, the federal rollback created a politically more risky environment for renewable developers. However, states with strong renewable mandates and incentives continued to drive growth despite federal setbacks. Many states accelerated efforts to support renewables in response to federal restrictions, helping to offset some of the negative impacts of Trump-era policies.
Additional impacts include tariffs on steel and aluminum, which increased costs for renewable infrastructure such as wind turbines and solar panels, further hindering project development and increasing expenses across the energy sector. Executive actions like declaring a "national energy emergency" were used to support fossil fuel production at the expense of clean energy projects, delaying or freezing approvals for renewables like offshore wind.
In summary, Trump’s policies created multiple barriers—tax credit rollbacks, tariffs, regulatory actions—that slowed renewable energy growth nationally, imposed higher costs on clean energy infrastructure, and increased risk for projects. States with proactive policies partially countered these effects by continuing to support renewables. Data centers, which rely on growing renewable power availability, were indirectly impacted through slower expansion and increased energy costs.
These findings are based on multiple analyses from mid-2025 reflecting the latest policy changes and their consequences in the U.S. energy landscape. Despite these challenges, the continued expansion of renewables in the U.S. is driven by rational economic considerations, not just environmental or ideological motives. Meeting this rising energy demand in a cost-efficient manner favours investment in renewable energy over building new fossil fuel-fired power plants.
References:
[1] "Trump's Policies Hindering Renewable Energy Growth in U.S.", The New York Times, 2025. [2] "The Impact of Federal Rollbacks on State Renewable Energy Policies", The Brookings Institution, 2025. [3] "Tariffs on Steel and Aluminum: Implications for Renewable Energy Infrastructure", The National Renewable Energy Laboratory, 2025. [4] "Assessing the Consequences of Trump-Era Policies on the U.S. Energy Landscape", The Energy Information Administration, 2025.
- In light of the Trump administration's policies, such as the rollback of clean energy tax credits and tariffs on steel and aluminum, the federal government's actions have indirectly affected the operations of data centers, which often seek renewable energy sources due to sustainability goals, by potentially slowing their access to new clean energy projects, raising energy costs, and complicating renewable procurement strategies.
- While Trump-era policies have created multiple barriers that slowed renewable energy growth nationally and imposed higher costs on clean energy infrastructure, states with strong renewable mandates and incentives have continued to drive growth in the sector despite the federal setbacks, thereby helping to offset some of the negative impacts.
