Climate goals go up in smoke as US datacenters turn to coal
US datacenters are experiencing a significant shift toward coal-powered energy due to elevated natural gas prices and rapidly growing electricity demand.
According to a research note from financial services firm Jefferies, datacenter operators are racing to connect new capacity to the electrical grid, with accelerated load growth expected during the 2026-2028 period.
This spike in demand is driving an unexpected resurgence in coal generation, which has increased nearly 20 percent year-to-date. The research note, seen by The Register, states:
“We raise our estimate for coal generation by ~11 percent (driven by higher capacity factors), and staying elevated through 2027 on favorable fuel pricing vs gas (particularly for existing fleet).”.
Related Knowledge Center: Air emissions
More than 30 years after the last major update of the Clean Air Act, the U.S. Supreme Court has upended the ability of Congress to give the Environmental Protection Agency and other federal agencies broad scope to combat air pollution, including the emission of greenhouse gases. Meanwhile, further Biden administration efforts to limit emissions face opposition in the courts.
Related Knowledge Center: ENERGY BASICS: coal
The use of coal, a staple of heating and electricity-generation for decades, is in decline in the United States — supplanted by newly abundant production of natural gas — but is still dominant in some parts of the world. While economical, coal use is particularly problematic as international attention focuses increasingly on climate change.