Trump tried to curb clean energy. It’s booming anyway.

Donald Trump is presiding over an unexpected clean energy boom, as rising electricity demand spurs investment in new capacity despite the US administration’s efforts to thwart a solar and wind rollout. Clean energy additions will rise by a record 45 gigawatts this year, according to S&P Global Energy—equivalent to the average electricity demand of Turkey. The increase is roughly 25 percent higher than the record set in 2024. The US president’s war in Iran, which has driven up global energy prices, along with surging power demand from AI data centers and developers’ rush to capitalize on expiring tax credits, are driving the cleantech boom, said analysts. Trump’s administration has also been pragmatic in the face of its energy needs. “There was a campaign promise to go against renewables, but at the same time they’re realizing that you can’t do without it,” said Izzet Bensusan, chief executive of Captona, an energy infrastructure investment group. “I don’t see a world where power demand is flattening out.” Credit: S&P Global Energy Credit: S&P Global Energy Expectations for sharply higher electricity demand are also driving the pace of the rollout. US power consumption is expected to grow 39 percent by 2035, according to consultancy ICF, driven by energy-hungry data centers and the electrification of household appliances and transport. The surge comes after demand remained steady for more than a decade. Solar and wind are among the quickest, cheapest forms of energy to add to the grid. According to RMI, a think-tank, new solar and wind sites have a lead time of less than two years, compared to at least three years to develop gas projects. Producers can break even by selling solar and wind power for as little as $38 and $37 per megawatt-hour, respectively, compared to at least $48 per megawatt-hour for gas, according to investment bank Lazard. However, these figures do not fully account for system upgrade costs and batteries to smooth out intermittency. Renewable power developers also stand to profit, as electricity prices are expected to rise 40 to 120 percent once Biden’s Inflation Reduction Act subsidies expire. “Candidly, it’s a good time to be a developer,” said Ethan Zindler, head of country and policy research at BloombergNEF. “Data centers need power, and they need it basically yesterday.” Extreme weather and Trump’s Iran war have also contributed to the growth. Credit: Rhodium Group-MIT/CEEPR, Clean Investment Monitor Credit: Rhodium Group-MIT/CEEPR, Clean Investment Monitor