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The rapid expansion of data centers by major technology companies could create a massive new source of carbon emissions as surging electricity demand drives a new wave of fossil-fuel power generation.
An analysis by the Financial Times of 60 major data centers planned in the United States by companies including Amazon, Microsoft, Google and Meta found that they could collectively produce 101.5 million tonnes of CO₂ emissions per year once fully operational.
That would be equivalent to around 7% of U.S. power-sector emissions in 2025, the annual emissions of 27 coal-fired power plants, or roughly 24 million gasoline-powered cars.
Energy researcher Jonathan Koomey cautioned that the figure is an estimate, but said it represents a significant increase compared with the emissions reductions that data-center companies were projecting five years ago.
The AI infrastructure boom is also driving new fossil-fuel generation. Three-quarters of the utilities serving the 60 planned projects are planning or building new gas-fired capacity, while a third of utilities operating coal plants are delaying their retirement.
According to Global Energy Monitor, the U.S. nearly tripled the amount of new gas-fired capacity under construction in 2025. If all planned plants are completed, the country's gas-generation fleet could grow by almost 50%. More than a third of that new capacity is intended to supply data centers.
At the same time, several technology giants have acknowledged that their own emissions are rising as they expand their data-center infrastructure:
- Amazon: emissions increased 16% from 2024 to 2025, while emissions associated with purchased electricity rose 34%.
- Microsoft: total emissions increased 25% over the same period, largely due to data-center expansion.
- Alphabet: reported an 18% increase in its emissions, partly linked to the rapid expansion of its business and supply chain activity.
All four companies have announced plans to match growing electricity consumption with investments in renewable energy, including through renewable-energy credits.
However, analysts warn that voluntary climate commitments may become increasingly difficult to maintain as the cost of reducing emissions rises.
Data centers are now considered the largest driver of U.S. electricity-demand growth, accounting for roughly 55% of projected utility load growth over the next five years.
Utilities are responding by planning a combination of new gas-fired and renewable generation, while some are postponing the retirement of existing coal plants. Georgia Power, which supplies data centers operated by Amazon and Microsoft, has asked regulators to approve 9,885 MW of new generating capacity, saying much of the additional power would serve large new customers such as data centers.
