New Report Finds Data Center Demand Overstated — Clean Energy Can Power the AI Boom
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Ryon Harms, [email protected], (310) 730-9407
EL CERRITO, CA — September 11, 2025 — The growth of artificial intelligence (AI) data centers is triggering a wave of fossil fuel expansion, but a new report, Compute and Consequence: AI Energy Demand in a Rapidly Evolving Grid Landscape, authored by As You Sow and Sierra Club shows that with strategic action by technology companies and utilities, the AI boom can be a tool for progress rather than an impediment to advancing the clean energy transition.
The report warns that exaggerated data center power forecasts are driving a rush to build new fossil gas plants — but stresses that tech companies can seize this moment to lead, proving they can scale AI while hitting climate goals, cutting costs for customers, and safeguarding shareholder value.
“AI has the potential to reshape our economy. Without transparency and smart planning, we risk building a fossil‑fueled foundation that locks in high energy costs and climate damage for generations,” said Kelly Poole, As You Sow’s Climate and Energy Program Coordinator and the lead author of the report. “Tech companies that embrace renewable procurement and demand flexibility will set themselves up to build faster and more reliably than those betting on gas and coal.”
“Technology companies have demonstrated their inventiveness and problem-solving abilities,” said Poole. “The tech companies that demand and facilitate clean, low-cost energy sources are well placed to be long-term leaders in AI technology development.”
One key example is the difference between Google and Meta. Google is pioneering agreements with two power utilities that allow it to shift AI workloads between data centers to reduce electricity use during peak demand, demonstrating that flexible operations paired with clean power can accelerate buildouts while easing strain on the grid. Meta, by contrast, has proposed a 2.2 GW data center campus – a facility that would consume enough electricity to power 1.5 million homes – in rural Louisiana, which will be powered largely by new methane gas plants, a choice that will take significant time to build out and could lock in nearly 100 million tons of carbon emissions over a 15‑year contract, placing heavy burdens on nearby communities already facing pollution.
The new report also addresses a range of risks facing utilities, technology firms, and investors — from fuel cost volatility and regulatory crackdowns to ratepayer backlash and loss of ESG credibility. It also underscores the systemic stakes: locking in new fossil capacity could undermine national decarbonization goals and magnify climate damages already topping $180 billion in U.S. disasters in 2024 alone.
“Utilities are treating speculative data center requests as a green light to overbuild gas plants,” said Jeremy Fisher, Principal Advisor for Climate and Energy at Sierra Club and co‑author of the report. “That’s a recipe for higher costs for everyday customers and price spikes in our bills when gas prices go up. We have to step back from the rush with common sense guardrails, and make sure that we’re insulating everyday consumers with zero fuel, affordable, clean energy for our long‑term needs.”
“Data centers can accelerate the clean energy transition — or they can stall it,” said Danielle Fugere, President and Chief Counsel of As You Sow. “Investors, utilities, and technology companies working together can ensure that the AI boom results in a cleaner, more reliable grid, rather than locking in greater climate damage. We are already paying too much for catastrophic extreme weather events, agricultural losses, and supply-chain breakdowns. Adding more greenhouse gas emissions to an already stressed system is nota good business strategy.”
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As You Sow is the nation’s leading shareholder representative, with a 30+ year track record promoting environmental and social corporate responsibility. Its focus areas include climate change, ocean plastics, toxins in the food system, the Rights of Nature, racial justice, and workplace diversity. Click here to view As You Sow’s shareholder resolution tracker.