Data Center Boom Threatens Climate Goals

The explosive growth of AI-driven data centers is severely threatening U.S. climate objectives and clean energy transitions by demanding unprecedented amounts of electricity, often from fossil fuels. This massive consumption, projected to triple by 2028 and strain vital water supplies, is prompting states to consider development moratoriums as experts warn it could outpace renewable energy gains and lock in reliance on emission-heavy power.

The rapid expansion of data centers, particularly driven by artificial intelligence, is posing a significant challenge to states' abilities to meet their climate objectives and clean energy transitions. As reported by the Center for Biological Diversity, this surge in data centers, often powered by fossil fuels, could sabotage the U.S.'s 2035 climate targets.
Data centers are projected to consume a substantial portion of electricity, with some estimates suggesting they could account for up to 12% of all U.S. electricity consumption by 2028, tripling their 2023 usage, according to an analysis by Lawrence Berkeley National Laboratory. This immense demand strains existing power grids and necessitates keeping emission-heavy power sources online.
Beyond energy, data centers also require vast amounts of water for cooling, with a single large facility potentially using over 1 million gallons per day during peak periods, as noted by a UC Riverside study. This escalating water demand threatens limited water supplies and community resources.
In response to these concerns, lawmakers in several states, including Michigan, Georgia, and Oklahoma, are introducing legislation to pause data center development to allow for studies on their environmental, energy, and fiscal impacts. For instance, Michigan lawmakers proposed a one-year moratorium to evaluate the long-term implications of rapidly expanding AI infrastructure.
Experts suggest that the voracious appetite for electricity from these centers could outpace gains in renewable energy, forcing continued reliance on gas, coal, or nuclear power to maintain grid reliability, thereby hindering clean energy transitions. The Financial Times highlighted that the growth in data center energy use is outpacing renewable energy growth, keeping grids reliant on fossil fuels.