Data center growth threatens state climate goals

Data center growth is threatening state climate goals in the United States. Climate-conscious lawmakers have proposed policies like requiring data centers to use clean power, development moratoriums, virtual power plants, and cap-and-trade programs to address the rising electricity demand from data centers. Experts warn that even with more clean energy on the grid, fossil fuel sources may need to remain online to ensure grid reliability. Data centers are a major driver of electricity demand growth, accounting for 40-55% of forecasted utility load increases. Several states, including California, Illinois, and New York, have introduced legislation to regulate data centers, while others have paused development over concerns about environmental and grid impacts. Cap-and-trade programs are also being considered as a way to mitigate greenhouse gas emissions from growing data center electricity use.