The AI Boom Will Increase US Carbon Emissions—but It Doesn’t Have To

The Union of Concerned Scientists (UCS) released an analysis highlighting that the rapid growth of data centers driven by the AI boom could increase US electricity demand by 60 to 80 percent by 2050, with data centers accounting for more than half of this rise by the end of the decade. Without significant policy changes, this surge in demand could lead to a 19 to 29 percent rise in CO2 emissions from US power plants over the next ten years. The report emphasizes that current political resistance to renewable energy and lack of strong national carbon regulations are key contributors to this potential increase in emissions and electricity costs. However, the analysis also identifies clear policy solutions to mitigate these impacts. Restoring tax credits for wind and solar energy, which were targeted in recent legislation, could reduce CO2 emissions by over 30 percent in the next decade despite growing electricity demand from data centers. These measures could also lower wholesale electricity prices by about 4 percent by 2050. The report notes that