The Data Center Backlash Should Also Be a Climate Reckoning. It Isn’t Yet

Data center energy demand will drive a significant buildout of natural gas power plants, increasing global emissions.

During Climate Week, protesters from Extinction Rebellion NYC disrupted a panel discussion on data centers, voicing concerns about AI and the environmental impact of these facilities. Data center executives like Crusoe's Cully Cavness and Emerald AI's Varun Sivaram defended their industry, highlighting potential grid benefits and local economic contributions. However, the national conversation around data centers is largely dominated by local issues such as water use, energy bills, and pollution, with climate change often being a secondary concern for voters. Protests at events like Climate Week, though focused on environmental issues, frequently face pushback when local economic or energy concerns are perceived to be overlooked by activists. Despite arguments that data centers could drive clean energy adoption, projections indicate a significant increase in demand for fossil fuels, particularly natural gas, to power these facilities. This buildout could substantially raise power sector emissions, potentially offsetting gains from coal plant retirements and posing a major climate threat.

The public and political discourse surrounding data centers is increasingly focused on local impacts like water usage and energy costs, overshadowing the broader climate implications of their energy consumption. While industry leaders suggest data centers can facilitate grid modernization and renewable energy integration, current trends indicate a substantial reliance on new and existing fossil fuel infrastructure. This dichotomy suggests a growing disconnect between the perceived immediate benefits and the long-term environmental consequences of the data center boom.

Analysts project that data centers will account for over five percent of global electricity demand by 2035, tripling current consumption. A significant portion of this new demand is expected to be met by natural gas, potentially increasing power sector emissions by six percent within a decade and even more if proposed on-site gas power plants are built. This trend threatens to undermine climate goals, as increased fossil fuel generation could negate emissions reductions from other sectors and lead to more coal plants remaining operational.