Data Hubs Surge Sparks Fossil Fuel Concerns

A spike in electricity demand from major data providers like AI and cloud computing is leading to increased fossil fuel usage due to slow clean-energy expansion. Countries and companies face challenges meeting emission targets, while data centers increasingly rely on natural gas and coal for power supply.

The growing demand from large-scale data providers is causing concern worldwide as it fuels an uptick in fossil-fuel use, potentially impacting climate goals, sources across several countries report. The growth in power consumption is propelled by artificial intelligence and cloud computing, yet the shift to sustainable energy is lagging.

Despite pledges from major tech companies to source renewable energy, data centers in the U.S., Poland, Germany, and Malaysia are increasingly dependent on fossil fuels like natural gas and coal. The trend raises a substantial barrier for ongoing global efforts to decarbonize energy systems.

While investments in renewable energy are ongoing, utilities are extending the lifespan of fossil-fuel plants and American utility Dominion is opting to build gas plants instead. This reliance is projected to significantly impact carbon emissions, complicating future energy strategies.

(With inputs from agencies.)