Utility solar installation is projected to reach an all-time high in the US in 2024, with more than 34GW of new solar capacity installed nationwide.

In its biannual Solar Market Report, American Clean Power reported that the US solar market is projected to grow at a CAGR of 6.6 percent from 2025 to 2030, reaching 37GW of annual new installations by 2029.

In addition, the report projected that capital costs on solar projects will decrease 14 percent by 2035, driven primarily by declining module prices.

ACP projects that 2025 will be a down year for installations, falling 16 percent compared to 2024. However, the market is expected to recover, with total installations across the US expected to grow by 16 percent by 2030.

The report contends that the new US administration may work “to change or remove certain portions of the IRA and accompanying guidance, but the IRA is unlikely to be completely undone.”

The solar market's growth will positively impact the power procurement strategy of US data centers. According to an S&P report, the US data center sector will have contracted at least 50GW of clean energy by the end of Q3 2024, with solar as the primary supply source at 29GW.

The US solar market has seen exponential growth over the past decade, with more than eight times the capacity today compared to 2014.

This is reflected in data center hotspots such as Virginia, which saw a massive jump from 2020, when solar produced 1,584GWh, to 6,072GWh in 2023.

As a result, data center companies, both small and large, have sought solar supply agreements. Recent examples include Meta, which signed a long-term PPA with rPlus Energies in Idaho, and Google, which signed a purchase agreement with Engie to receive energy from the 350MW Chillingham solar project in Bell County, Texas.