Despite concerted efforts by Washington to hinder solar and wind farm development, surging electricity demand and a flurry of new grid investments are driving an unexpected boom in clean energy under President Donald Trump.
According to S&P Global data, new clean energy installations are set to hit a record 45 gigawatts this year, roughly equivalent to Turkey's average electricity needs. That represents an increase of about 25% over the previous record set in 2024.
Analysts point to several converging factors fueling this surge: Trump's military actions against Iran have driven up global energy prices, artificial intelligence data centers are creating massive power demand, and developers are racing to lock in expiring tax credits before they lapse.
The administration has also taken a pragmatic stance when confronted with domestic energy requirements. "Campaign promises were to suppress renewables, but at the same time they realize the country's development depends on these energy sources," said Izzet Bensusan, CEO of energy infrastructure investment firm Captona. "I don't think electricity demand is going to plateau anytime soon."
S&P projects that new solar and wind capacity additions in 2026 will surge by nearly one-third and close to 50%, respectively. Solar installations are expected to hit another record in 2027, while wind capacity will dip before recovering again.
White House spokesperson Taylor Rogers, however, touted "record oil and gas production" under Trump's leadership. "The president has delivered on his campaign promise to liberate America's energy potential," Rogers said. "At the same time, this administration has eliminated subsidies for costly and unreliable energy sources that American taxpayers were previously forced to fund, which was unfair."
Solar and wind installations continue to move forward even though Trump moved quickly upon taking office to dismantle the energy transition policies of his predecessor. The administration halted Nevada's Esmeralda 7 project, which would have become the largest single-site solar installation in the United States.
The president's "Make America Great Again" bill also significantly reduced tax credits for solar and wind, and the government has intervened in standard project approval processes affecting more than 150 onshore wind developments.
However, under the provisions of the Inflation Reduction Act, solar and wind developers must begin project construction before July 4 and complete construction by 2030. John Murray, a renewable energy analyst at S&P Global, said this deadline "is pushing developers to accelerate groundbreaking."
Expectations of significantly higher electricity demand are also accelerating the pace of new energy deployment. ICF consulting data projects that U.S. electricity consumption will grow 39% by 2035, driven by power-hungry data centers, household appliances, and transportation electrification. This comes after more than a decade of flat power demand in the United States.
Solar and wind are among the fastest and cheapest energy sources to connect to the grid. Rocky Mountain Institute research shows new solar and wind projects can be built in under two years, while natural gas projects take at least three years to develop. Lazard investment bank data indicates solar and wind can reach break-even power prices as low as $38/MWh and $37/MWh respectively, while natural gas requires at least $48/MWh.
However, these figures do not fully account for grid upgrade costs or the battery storage needed to smooth out intermittent generation. Once Inflation Reduction Act subsidies expire, electricity prices are expected to rise by 40%-120%, which will also benefit renewable developers.
"Honestly, this is a golden period for developers right now," said Ethan Zindler, head of country and policy research at BloombergNEF. "Data centers desperately need electricity and want it immediately." Extreme weather events and Trump's Iran conflict are also contributing to the momentum behind renewable energy development.
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