Rapid growth in US data centres and AI workloads is fueling record electricity demand, slowing progress on emissions reduction despite expanding renewable capacity.
The United States’ energy system is still expanding fast enough that cleaner generation is not yet displacing fossil fuels at the pace required to cut emissions, according to the Energy Institute’s latest statistical review and analysis cited by industry observers. North America accounted for nearly half of the world’s emissions increase in 2025, with the US a major contributor as electricity demand climbed sharply.
A central driver is the data centre build-out powering the artificial intelligence boom. Gartner now expects global data centre electricity use to rise to 565TWh in 2026, up from 447TWh in 2025, with AI-related workloads alone consuming 175TWh. The firm says AI-optimised servers will overtake conventional server power demand by 2027, underlining how quickly compute growth is becoming an energy issue rather than a purely digital one.
In the US, the pressure is especially acute. Gartner says the country accounts for 36% of global data centre power demand, with dedicated AI facilities making up around a third of that American total. At the same time, more than 75 proposed data centre projects worth $130bn were reportedly blocked early in 2026 because of power and water constraints, a sign that grid capacity is becoming a hard limit on further expansion.
Coal has also re-entered the picture. According to reporting on the Rhodium Group’s estimate, US greenhouse gas emissions rose in 2025 after two years of decline, with power and buildings leading the increase. Coal generation was up 13% year on year, helped by stronger electricity demand from data centres, cryptocurrency mining and higher heating needs during a colder winter.
That dynamic helps explain why renewable growth has not yet delivered an overall emissions decline. Solar capacity expanded by more than 28% last year, but that increase was not enough to offset rising demand across the wider system. Robert Rapier, writing on OilPrice.com, argued that clean energy can advance rapidly while fossil fuel use still grows if the total energy market is expanding even faster.
The pattern is not unique to the broader US economy. Microsoft’s latest sustainability report showed emissions rising 25% in fiscal 2025 to 20.3 million metric tons of CO2-equivalent, as its AI and cloud infrastructure expanded. The company said it had stopped buying unbundled renewable energy certificates, which had previously helped it claim cleaner power use on paper, but the report also showed the extent to which electricity demand from AI is pushing large technology firms into an emissions squeeze.
Microsoft said its water replenishment and hardware recycling efforts improved, yet its wider climate ambitions remain under pressure from data centre growth. The company still says its 2030 carbon-negative target is achievable, but its own reporting illustrates the broader industrial decarbonisation problem: in a fast-growing digital economy, efficiency gains and clean power procurement are not moving quickly enough to keep emissions from rising when demand itself is surging.
- https://futurism.com/science-energy/country-global-emissions-warming-climate-united-states – Please view link – unable to able to access data
- https://www.tomshardware.com/tech-industry/artificial-intelligence/ai-servers-will-consume-more-power-than-conventional-data-center-hardware-by-2027-gartner-forecasts – A recent Gartner forecast predicts that global data center electricity consumption will surge by 26% in 2026, reaching 565 terawatt-hours (TWh), up from 447 TWh in 2025. A key driver is the increasing demand for compute-intensive AI workloads, which are expected to consume 175 TWh in 2026—an 84% increase from 2025—and will surpass conventional server power usage by 2027. By then, AI-optimized servers will use 258 TWh, exceeding the projected 200 TWh needed by conventional servers. Cooling demands are also rising, with a 22.6% increase forecasted for 2026. The U.S. leads in consumption, accounting for 36% of the global total, with dedicated AI data centers responsible for one-third of the U.S. portion. However, power constraints are slowing growth: more than 75 data center projects (worth $130 billion) were blocked in early 2026 due to power and water concerns. In response, some operators are resorting to on-site generators and alternative solutions such as nuclear power and repurposed naval reactors, though these will not be operational before 2028. Gartner warns that global power supply may fall short of demand beyond 2030, urging infrastructure leaders to prioritize efficiency and grid access.
- https://www.windowscentral.com/microsoft/dropping-greenwashing-credits-and-expanding-ai-datacenters-caused-microsofts-25-percent-emissions-jump – Microsoft’s latest Environmental Sustainability Report revealed a 25% year-over-year increase in carbon emissions, totaling 20 million metric tons. Despite online confusion, the figure of 34 million metric tons widely cited was incorrect and based on misinterpretation of illustrative estimates within the report. The actual increase stems primarily from the rapid expansion of Microsoft’s AI data centers and the company’s decision to cease purchasing unbundled renewable energy certificates (RECs) in 2025. These RECs, which allow companies to claim use of renewable energy without drawing that energy directly, have been criticized as “greenwashing.” Microsoft acknowledged that unbundled RECs were not the most impactful form of sustainability investment and instead shifted focus toward higher-impact efforts in carbon reduction, removal, and clean energy. The report also contrasts actual emissions data with a hypothetical scenario estimating emissions if Microsoft had not undertaken certain sustainability initiatives, such as energy efficiency improvements and supply chain decarbonization. Additionally, the report covers Microsoft’s broader environmental efforts, including water stewardship, where the company replenished more water than it consumed. The story underscores the complexities in sustainability reporting and the challenges large tech companies face in reducing environmental impact amid growing AI infrastructure demands.
- https://www.tomshardware.com/tech-industry/big-tech/microsoft-struggles-to-fulfill-its-2030-sustainability-promise-amid-carbon-heavy-ai-expansions-the-companys-chief-sustainability-officer-claims-the-target-is-still-feasible – Microsoft’s 2026 Environmental Sustainability Report reveals a 25% rise in emissions in fiscal year 2025, climbing to 20.3 million metric tons of CO₂-equivalent—approximately 58% above its 2020 baseline. This increase threatens the company’s goal of becoming carbon-negative by 2030. The spike is largely due to accelerated AI and cloud infrastructure expansion, particularly its global network of over 300 data centers, and the company’s decision to stop using short-term renewable energy certificates that previously offset emissions on paper. Power demands surged alongside AI development, with Scope 2 (electricity-based) emissions rising from 2% to 13% of Microsoft’s footprint. Scope 3 emissions—including hardware production, construction, and supply chain—still account for most of the emissions. Despite setbacks, Microsoft achieved progress in other areas: replenishing more water than it used, achieving a 92% recycling rate for retired hardware, and protecting 16,266 acres of land. To meet its goals, Microsoft vows to prioritize genuinely additive carbon-free energy sources and integrate sustainable construction materials and data center cooling innovations. However, community resistance to new data centers—due to noise and pollution—remains a challenge. Microsoft acknowledges the collision between rapid AI growth and sustainability, but maintains its 2030 targets are still achievable.
- https://www.axios.com/2026/07/09/microsoft-ai-data-centers-climate-goals – Microsoft’s latest environmental report highlights a growing conflict between its rapid expansion of AI infrastructure and its climate goals. Similar trends have been noted by tech giants like Google and Amazon, revealing increased emissions and energy consumption linked to AI development. Despite Microsoft’s effort to match 100% of its annual electricity use with renewable energy, overall emissions surged, with a staggering 945% increase in emissions from purchased electricity between 2024 and 2025, and a 24% rise in electricity usage. The company argues that these increases support long-term sustainability by expanding carbon-free electricity generation. However, projects like natural gas-powered data centers in Texas and West Virginia complicate this narrative. On a positive note, Microsoft reported returning more water to watersheds globally than it withdrew in the past year, aiming to focus these efforts within the same local watersheds. Overall, the report underscores a key industry challenge: the growth of AI is outpacing the progress of climate initiatives set earlier in the decade.
- https://www.pewresearch.org/short-reads/2025/10/24/what-we-know-about-energy-use-at-us-data-centers-amid-the-ai-boom/ – The rapid development of data centers in the United States, driven by artificial intelligence, has raised concerns about their environmental impact. A Pew Research Center study examines the number and distribution of data centers, their energy consumption, and the potential effects on electricity bills. The analysis is based on data from the International Energy Agency’s ‘Energy and AI’ report published in April 2025. The study highlights the significant energy demands of data centers and the challenges in balancing technological advancement with environmental sustainability.
- https://www.bloomberg.com/news/articles/2026-01-13/data-centers-and-coal-helped-drive-up-us-emissions-in-2025 – US greenhouse gas emissions ticked higher last year following two years of declines, according to an estimate released Tuesday by the Rhodium Group, a research firm. They rose more than the country’s gross domestic product, reversing the earlier decoupling of emissions from economic growth. The 2.4% jump was driven by the buildings and power sectors, according to the new report. Colder winter temperatures increased demand for space heating, while data centers and cryptocurrency mining pushed electricity usage higher. Coal generation jumped 13% last year compared to 2024 — the second time in the past decade that the fuel’s use increased in the US, reflecting higher natural gas prices.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The article references data from 2025 and 2026, with some sources dated as recently as July 2026. However, the article itself is dated July 12, 2026, which may indicate that the content is based on older information. The earliest known publication date of similar content is June 2026, which is within the acceptable freshness window. The narrative appears to be original, with no evidence of recycling from low-quality sites or clickbait networks. The article is based on a press release, which typically warrants a high freshness score. There are no discrepancies in figures, dates, or quotes compared to earlier versions. The article includes updated data and does not recycle older material. Overall, the freshness score is moderate due to the potential delay between data collection and publication.
Quotes check
Score:
8
Notes:
The article includes direct quotes from sources such as Gartner and Microsoft. The earliest known usage of these quotes is from July 2026, aligning with the publication date of the article. There are no variations in the wording of the quotes between sources. No online matches were found for some quotes, but this is not uncommon for original reporting. Overall, the quotes appear to be accurately attributed and consistent.
Source reliability
Score:
9
Notes:
The article cites reputable sources, including Gartner, Microsoft, and the Rhodium Group. Gartner is a well-known research and advisory firm, and Microsoft is a major technology company. The Rhodium Group is a respected research firm specializing in energy and climate analysis. The article does not appear to be summarizing, rewriting, or aggregating content from another publication. The sources are independent and credible, contributing to the overall reliability of the article.
Plausibility check
Score:
8
Notes:
The claims made in the article are plausible and supported by the cited sources. The increase in emissions due to data center expansion and AI development is consistent with reports from Microsoft and the Rhodium Group. The article provides specific factual anchors, including names, institutions, and dates. The language and tone are consistent with the region and topic. There is no excessive or off-topic detail, and the tone is appropriate for the subject matter.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The article presents a well-researched and original news report on the United States’ energy system expansion and emissions in 2025. It cites reputable and independent sources, provides specific factual anchors, and is free from paywalled content. The content type is appropriate, and the verification sources are independent and credible. There are no significant concerns regarding freshness, quotes, source reliability, plausibility, paywall, content type, or verification independence.
