Criticism of data centers is steadily growing as consumers become increasingly aware of their high energy and water consumption. Until now, the industry has been weakly regulated, and transparency remains a challenge. Meanwhile, tech companies are rapidly expanding, and data center-related energy consumption is expected to rise sharply over the next decade. Some companies promise to build greener data centers powered by clean electricity, but the question remains whether a truly "green" data center is possible.
A recent report revealed that companies plan to use gas-fired power to power over 100 data centers in the UK. Meanwhile, the US is leading the significant global growth in gas-fired power generation, which is expected to lead to increased emissions. According to recent research, new gas production is meeting strong demand from tech companies powering energy-intensive data centers to support artificial intelligence systems.
According to a report by Global Energy Monitor, record growth in gas-fired power plant capacity is expected in 2026, increasing global gas capacity by nearly 50 percent. The United States is driving this expansion, tripling its planned gas capacity by 2025. About a third of the 252 GW of gas-fired power plant capacity under development is planned for data centers. Heavy reliance on gas undermines some of the ambitious climate commitments made by major tech companies in recent years.
Between 2026 and 2030, nearly 100 GW of new data centers are expected to come online worldwide, doubling global capacity. Therefore, investing in greener operations could be crucial to curbing carbon emissions. In 2024, global data centers are estimated to have consumed 415 terawatt-hours of electricity, equivalent to approximately 1.5 percent of global electricity consumption, and this figure is expected to double by the end of the decade.
While nearly all major tech companies operating in the cloud computing and hyperscale space, such as Amazon, Google, Meta, and Microsoft, have made ambitious sustainability commitments, data center expansion is jeopardizing these commitments, as many companies are switching to gas to circumvent grid constraints. However, some companies are developing their own renewable energy projects or purchasing clean energy to power their data centers.
In December 2025, Michael Thomas, founder of Cleanview, a market intelligence platform for energy transitions, stated that major tech companies continue to prioritize renewable energy over fossil fuels. "I think the key question over the next five years is how much clean energy can be deployed, because solar, wind, and batteries can get us significantly closer to that goal, but there are many barriers preventing us from doing so," he explained.
Between 2020 and the end of 2025, Meta offset its entire electricity consumption with "clean and reliable energy." The company has entered into agreements with Invenergy, Alliant Energy, Enbridge, AES Corporation, and Zelestra to provide this clean energy. Meta is partnering with Entergy to connect at least 1.5 GW of new renewable energy to its multibillion-dollar Hyperion artificial intelligence data center in Louisiana. Meanwhile, Microsoft has committed to offsetting its entire electricity consumption with zero-carbon energy purchases by 2030.
However, the problem with some claims about using "green" energy is that most companies still rely heavily on renewable energy certificates and emissions offsetting systems, rather than investing in the development of new, targeted green energy projects. Most data centers operated by these companies still draw power from the central grid, which uses a hybrid energy source that combines fossil fuels and clean energy sources.
A formal definition of a "green data center" has not been established and can vary by location, allowing companies to claim their operations are more environmentally friendly than they actually are. In Scotland, government policies aimed at encouraging the construction of data centers may result in significant carbon emissions being ignored. Scotland wants to encourage the development of "green data centers," but has not provided a clear definition of what is meant by this term.
The NGO Action for Scotland's Countryside warned that without proper definition, all data centers could claim to be "green" to obtain planning permission, resulting in significant environmental costs. Meanwhile, Green Party politician Ariane Burgess emphasized: "We urgently need transparency about what constitutes a 'green data center' and how our energy infrastructure will support their massive energy needs.".
While many are concerned about the high energy consumption of data centers and the continued reliance of many tech companies on fossil fuels, there are other environmental concerns associated with the development of these industries, including intensive water and land use. Due to a lack of understanding of what constitutes a "green data center," it is unlikely that any tech company will be able to fully transition to sustainable development, although this may change if governments introduce stricter regulations and standards for the industry.
Felicity Bradstock for Oilprice.com
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