Data centers’ power demands threaten climate goals due to fossil fuel use

The growing energy demands of data centers worldwide are increasingly being met by fossil fuels rather than renewable energy sources, according to a Reuters report by Valerie Volcovici. Major tech companies’ artificial intelligence and cloud computing operations require substantial power, which utilities are supplying through new gas plants and extended use of coal facilities because renewable energy deployment cannot keep pace with demand. In the United States, which hosts one-third of global data centers, utilities are building new gas plants and delaying the retirement of fossil fuel facilities. Morgan Stanley projects that data centers will produce approximately 2.5 billion metric tons of carbon dioxide equivalent through 2030. Despite pledges from companies like Meta, Microsoft, and Amazon to use renewable energy, their current approach often involves redirecting existing clean power rather than creating new renewable capacity.