AI’s Energy Appetite Is Fueling a Fossil Fuel Comeback

A Clean Energy Future on Pause

AI data centers are pushing U.S. energy demand back toward coal and natural gas. Here’s how fossil fuels are making a dangerous comeback and what that means for the environment.

Just a few years ago, the U.S. was poised to shift away from fossil fuels. Cleaner technologies like solar and wind were gaining ground, and coal plants were scheduled for retirement. However, the growing demand from AI-powered data centers is rapidly reversing that progress.

Now, utilities are slowing down coal retirements, and energy companies are ramping up the use of natural gas  a move that environmental advocates are calling a major step backward.

“We were ready to move away from the energy system of the past,” said Kendl Kobbervig of Clean Virginia. “But now we’re going in the opposite direction.”

Data Centers and the Fossil Fuel Resurgence

According to a Bloomberg report, the AI industry’s massive energy demands are helping revive fossil fuels. Coal plants that were once on the chopping block are now staying online to keep up with consumption. Meanwhile, natural gas infrastructure is expanding at a rate not seen since 2017.

Data from the Sierra Club reveals a startling trend: In just the first half of this year, utility companies announced more new gas projects than in all of 2020. That’s twice the pace of earlier growth.

And there’s more to come. Yes Energy estimates that over 200 new gas plants are currently in development across the country.

Is Natural Gas Really “Clean”?

Natural gas has often been marketed as a cleaner alternative to coal. It emits less carbon dioxide when burned, which has helped justify its growing use. However, that narrative ignores the significant environmental damage caused by methane leaks and fracking two common byproducts of natural gas operations.

Methane, the main component of natural gas, has an 80-times stronger warming effect than CO₂ over a 20-year period.

Even small leaks can have massive impacts on the climate. While renewables like solar and wind are growing, they struggle to offset the emissions from fossil fuels, especially when overall energy demand is rising.

Renewables Are Growing But Not Fast Enough

Federal projections still show a rise in renewable energy, with solar and wind accounting for much of the new capacity. Yet, if the U.S. continues building out fossil fuel infrastructure at the current rate, those clean energy gains may not be enough to achieve a carbon-neutral future.

Notably, not all proposed gas plants will be completed. Based on past trends, a Berkeley Lab analysis suggests about one-third will eventually become operational. Still, that’s a higher completion rate than many renewable projects.

Once built, these gas plants will emit carbon and methane for decades, locking the country into dirty energy long after the world should have moved on.

Final Thoughts: A Dangerous Detour

The rise of AI brings innovation, but its unintended environmental cost is becoming impossible to ignore. As AI data centers expand, so does the nation’s dependence on fossil fuels we were supposed to leave behind.

In a moment when urgency around climate change is higher than ever, the U.S. appears to be taking a dangerous detour—powering the future with the pollution of the past.