The Dark Side of Data Centers’ Energy Appetite

The rapid growth of data centers has been touted as a vital cog in the machinery of modern technology, but its impact on the environment is more sinister than previously thought. Two of America’s largest oil and gas companies, Williams and Chevron, have invested heavily in the demand for natural gas to power these digital behemoths, potentially locking us into decades of greenhouse gas emissions.

The data center industry’s insatiable appetite for energy has led to a surge in demand for natural gas, projected to increase by 36% by the mid-2030s. Established players like Meta and Microsoft are driving this growth, as well as newer entrants eager to capitalize on the lucrative market. Williams’ recent announcement of $5 billion in investments for its data center ventures, including a partnership with private equity giant KKR, highlights the scale of this investment.

Five gas-fired power plants connected to data centers, owned by Williams and Chevron, could emit up to 32 million tons of greenhouse gases per year – roughly equivalent to the annual emissions of Guatemala. Environmental groups like Friends of the Earth have criticized the alliance between tech and oil as a “lifeline” for an industry that should be phased out.

Long-term contracts are also a concern, with Williams’ agreements with Meta ranging from 10 to 12.5 years and Chevron’s deal with Microsoft stretching to 20 years. These multi-decade commitments will likely perpetuate a reliance on fossil fuels, making it increasingly difficult for data centers to transition to cleaner energy sources.

Chevron’s 2.67-gigawatt project in Texas is one of the largest behind-the-meter gas power plants ever built, and its environmental impact will be substantial. Permit applications show that it could produce over 11.5 million tons of carbon-dioxide-equivalent emissions per year – outstripping the annual emissions of many small countries.

The tech industry justifies relying on fossil fuels by providing reliable capacity and augmenting with renewable energy in the future. However, this narrative is built on a flawed assumption: that these power plants will be decommissioned or repurposed when cleaner energy sources become available. The reality is that many of these facilities will continue to operate for decades, locking us into a high-carbon infrastructure.

The data center industry’s growth also drives the development of new pipeline infrastructure, exacerbating the problem. Williams’ 9-mile natural gas pipeline in Ohio is an example of this trend, with the company envisioning it as an “energy artery” for future projects.

As the world grapples with the climate crisis, policymakers must confront the unintended consequences of our addiction to data centers. The alliance between tech and oil may be lucrative in the short term, but its long-term impact on the environment will be devastating. It’s time for policymakers to take a closer look at this emerging trend and begin working towards a future where data centers are powered by clean energy sources.

Chevron is already talking to potential future customers and touting the “repeatable model” of its partnership with Microsoft, suggesting that we’re sleepwalking into a high-carbon future. It’s time to wake up and demand a different path forward – one that prioritizes sustainability over short-term profits.