- Microsoft Signs Massive Methane Gas Deals to Support Growing AI Workloads
- Expansion of AI is driving hyperscalers toward faster fossil fuel energy solutions
- Microsoft Data Center Emissions Predicted to Increase Dramatically by 2028
Microsoft has signed a series of deals for methane gas-powered AI data centers totaling nearly 5 gigawatts of capacity, marking a move away from the company’s climate goals.
The race for AI supremacy is leading hyperscalers to harness all the power available, and Microsoft has turned to fossil fuels to keep its AI tools running without delay.
The agreements include an exclusive partnership with oil giant Chevron for a 2.5 gigawatt plant near Pecos, Texas, along with additional facilities in Abilene, Texas, and Mason County, West Virginia.
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The gap between promises and actions
Research by Stand.earth Research Group claims that these projects will increase Microsoft’s data center carbon footprint by 160%, reaching approximately 25.25 million metric tons of CO₂e by 2028.
“Microsoft makes big claims about its climate credentials, which makes it even more disappointing to see the company turn to fossil fuels,” said Rachel Kitchin, senior manager of corporate climate campaigns at Stand.earth.
Three years after its 2020 climate pledge to become carbon negative by 2030, Microsoft’s emissions had already increased by at least 30%.
Microsoft President Brad Smith recently stated that he was “confident in our ability” to meet the 2030 goal.
By the end of 2024, on-site data centers accounted for just 5% of all methane gas energy demand being developed in the United States; a year later, this figure shot up to 39%, as demand for LLM training and delivery accelerated faster than renewable capacity could be built.
Developers claim that behind-the-meter methane gas eliminates the burden for existing utility customers; However, industry analysts warn that data center demand has already increased consumers’ electricity bills.
A Virginia Commonwealth University study found that on-site methane gas for a single data center could generate between $53 million and $99 million in health-related costs.
A 2021 Harvard University study also found that one in five deaths worldwide may be linked to air pollution from burning fossil fuels.
Research also suggests that data centers can raise local temperatures, indirectly increasing electricity bills through increased demand for home cooling.
Microsoft claims to meet 100% of its electricity demand with renewable energy, but these claims are based on energy markets that do not require direct delivery to its data centers.
The gap between what Microsoft says and what it does seems to grow by the day.
Renewables are cheaper than fossil fuels, making Microsoft’s pivot to methane gas for its AI tools difficult to defend.
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