Tech companies’ buildout of fossil gas plants to run data centers is on track to erase 15 years of emissions reductions achieved in U.S. power generation, according to an internal Sierra Club analysis covered by Bloomberg. The sector will emit 618 million more metric tons of carbon dioxide by 2030 than it did in 2025, the environmental group estimates — an increase driven largely by off-grid fossil-fuel power.
But that number would come to fruition only if many, many more data centers actually get built, and even top AI company Anthropic acknowledges the industry faces some serious hurdles. In its initial IPO paperwork filed this week, Anthropic raised concerns about data centers’ increased reliance on gas power, which could become harder and more expensive to build and run due to supply chain shortages and rising fuel prices. Couple that with growing public opposition to data centers, and the AI sector has a tough journey ahead.
The latest on the permitting bill: Wind concessions, new allies, and more
The U.S. Senate is marching toward a vote on its bipartisan permitting bill, and more stakeholders are taking sides. As I wrote last week, many in the clean energy industry are backing the legislation because it could dramatically speed the development of transmission and energy projects. A coalition of geothermal, nuclear, and other energy developers and funders joined their ranks this week, signing onto a letter that argues the bill’s passage is essential for America to stay competitive.
At the same time, John Podesta, former senior climate adviser to the Biden administration, warned the legislation would hand President Donald Trump a “loaded Howitzer” to make irreversible decisions about public lands. The NAACP also came out with concerns about the bill’s environmental justice implications. And Rep. Sean Casten (D-Ill.) says energy developers are “overwhelmingly” telling him that they’d build gas in response to the legislation.
Meanwhile, Democrats and the Trump administration are trading demands and concessions that could determine the bill’s fate. After Democrats took umbrage with the Interior Department’s renewed attacks on offshore wind, the administration started letting some long-delayed onshore wind projects get moving again. But four Democratic senators are also calling for the DOE to reinstate blue-state climate funding it clawed back last year, saying it will build their trust that the White House would actually execute the permitting bill as written.
Clean energy news to know this week
Atomic advantage: The DOE announces a conditional loan of up to $5 billion for Constellation Energy to upgrade its nuclear fleet in Illinois, Maryland, and Pennsylvania — a move that will get power online more quickly than building new plants. (Canary Media)
Loans, loans everywhere: The DOE closes a $5.1 billion loan for Alliant Energy to expand gas power generation and battery storage, improve its existing generation facilities, and strengthen grid reliability across Iowa and Wisconsin. (news release)
The cost of coal: The Trump administration has propped up nearly half of the nation’s 184 U.S. coal plants with taxpayer-funded handouts, air pollution exemptions, and emergency stay-open orders, according to the Environmental Defense Fund. (Canary Media)
Batteries roll forward: BloombergNEF revises its predictions for U.S. energy storage deployment, suggesting the country will install 30% more battery storage over the next decade than the firm predicted just six months ago. (Utility Dive)
And methane rules roll back: The EPA formally proposes rescinding Biden-era regulations that aimed to curb planet-warming methane leaks and emissions from the oil and gas industry. (Associated Press)
We decarbonized a zoo: The Detroit Zoo is exploring ways to heat and cool its animal habitats with less, and cleaner, energy as part of a state grant program helping five organizations decarbonize their operations. (Canary Media)
A winter wonder: The many states with spare grid capacity in the winter could potentially lower residential power rates by bringing more heat pumps online, according to a new RMI analysis. (Canary Media)
