Data Center Power Play

The report argues that the United States can meet surging electricity demand from AI data centers using clean energy while phasing out fossil fuels, provided that stronger state and federal policies are implemented. It warns that under current policies, data center growth will increase reliance on gas and coal, leading to higher emissions and significant costs for ratepayers. Conversely, adopting clean energy policies—such as restoring federal tax credits and implementing carbon-free electricity standards—could save trillions of dollars in climate and health damages, far outweighing the costs of the energy transition.

• US electricity demand is projected to increase by 60 to 80 percent between 2025 and 2050, with data centers accounting for more than half of that increase by 2030.
• The cumulative wholesale electricity costs attributable to data center demand from 2026 to 2050 are estimated between $886 billion and $978 billion, which is 18 to 24 percent of total US electricity system costs.
• Under current policies, the additional fossil fuel generation required for data centers would increase annual US power plant carbon dioxide (CO2) emissions by 19 to 29 percent (229 to 342 million metric tons) by 2035.
• Restoring federal clean energy tax credits would reduce total US power plant CO2 emissions by 33 percent between 2026 and 2035, even if data center demand more than doubles.
• The economic benefits of reducing US heat-trapping emissions are estimated at $1.3 trillion to $1.6 trillion between 2026 and 2035, potentially growing to $8 trillion to $13 trillion by 2050.
• Cumulative health benefits from reducing local air pollution are projected to range from $120 billion to $220 billion by 2050.
• The societal benefits of a clean energy transition far exceed the projected $412 billion (7 percent) increase in total US wholesale electricity costs associated with decarbonizing the power sector.
• Under a 'Low-Carbon Policy' scenario, renewable energy sources would provide over 60 percent of total US electricity generation by 2035 and 81 percent by 2050.
• In a high-demand growth scenario under current policies, electricity system costs attributable to data centers would exceed $1.6 trillion cumulatively from 2026 to 2050.

APA

Clemmer, S., Chavez, M., Dotson, S., Gignac, J., Sattler, S., & Shaver, L. (2026). Data Center Power Play. Union of Concerned Scientists. https://www.ucs.org/sites/default/files/2026-01/Data-Center-Power-Play-report-final.pdf

Chicago

Clemmer, Steve, Maria Chavez, Samuel Dotson, James Gignac, Sandra Sattler, and Lee Shaver. Data Center Power Play. Union of Concerned Scientists, 2026. https://www.ucs.org/sites/default/files/2026-01/Data-Center-Power-Play-report-final.pdf.

Wikipedia

{{cite report |last1=Clemmer |first1=Steve |last2=Chavez |first2=Maria |last3=Dotson |first3=Samuel |last4=Gignac |first4=James |last5=Sattler |first5=Sandra |last6=Shaver |first6=Lee |title=Data Center Power Play |publisher=Union of Concerned Scientists |date=January 2026 |url=https://www.ucs.org/sites/default/files/2026-01/Data-Center-Power-Play-report-final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clemmer2026data, author = {Clemmer, Steve and Chavez, Maria and Dotson, Samuel and Gignac, James and Sattler, Sandra and Shaver, Lee}, title = {{Data Center Power Play}}, institution = {Union of Concerned Scientists}, year = {2026}, month = jan, url = {https://www.ucs.org/sites/default/files/2026-01/Data-Center-Power-Play-report-final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }