Data centers are driving demand for gas from PNW utilities, reports find
Electric utilities in Washington and Oregon are increasingly relying on natural gas to meet the surging energy demands from data centers, jeopardizing the states' emission reduction targets. Reports from Columbia Riverkeeper and Sightline Institute indicate utilities are circumventing climate rules to ensure regional energy reliability. Major data center companies like Amazon and Microsoft assert their commitment to renewable energy, but the increased gas use presents a significant challenge to regional climate goals.
Electric utilities across Washington and Oregon are increasingly turning to natural gas to satisfy the rapid and growing energy demands from data centers, according to recent analyses by Columbia Riverkeeper and the Sightline Institute. The reports highlight that a rising number of utilities are investing in new gas-powered energy infrastructure or purchasing gas-generated power from other states. Some public utility districts are even permitting on-site gas-powered generators for data centers, circumventing grid reliance.
This shift towards gas threatens Washington and Oregon's established emission reduction targets, which are crucial for mitigating global warming. Audrey Leonard, a staff attorney at Columbia Riverkeeper, noted that while both states had been progressing towards clean energy goals, data center demand is transforming this challenge into a crisis, enabling utilities to skirt climate regulations that typically restrict new gas infrastructure development. The Oregon Department of Energy had previously projected the state would meet its 2035 emission goals, but now forecasts a two-year delay due to data center energy demands, alongside other factors.
Conversely, spokespeople for major data center operators, Amazon and Microsoft, assert their commitment to sustainability. Margaret Callahan, an Amazon spokesperson, highlighted the company's $60 billion investment in Oregon since 2010 and its data centers' 10% greater energy efficiency compared to the industry average, alongside investments in wind and solar projects. Microsoft spokesperson Morgan Babinec pointed to the company's global commitment to 100% renewable energy coverage by 2025 and its efforts to transition backup generators in Washington data centers to renewable biofuel.
Despite these corporate assurances, federal energy officials have used data center demand to justify keeping Washington's largest coal-burning power plant operational beyond its state-mandated shutdown date. Additionally, Puget Sound Energy, Washington's largest utility, has contracted for six new gas turbines. Researchers warn that meeting the states' climate goals, which include electrifying the transportation sector, requires replacing significant amounts of existing coal and gas power with renewables, a goal complicated by the current reliance on gas for data center power.