US Energy Policy Shifts Toward Fossil Fuels Amid Rising Demand
Rising demand from data centres and AI is driving a return to traditional energy sources.
A New Energy Reality in the US
The US energy sector is undergoing its most significant shift in a decade. Demand for electricity from data centres, factories, and electric vehicles is growing at a record pace. However, the decisions made to meet this demand are increasingly relying on fossil fuels rather than solar or wind power. According to new research, the country is planning its largest expansion of fossil fuel infrastructure in a decade.
A Change in Political Course
Although wind and solar energy surpassed coal in electricity generation for the first time in 2024, the landscape is shifting. The current US administration is actively supporting natural gas projects. Research indicates that while fossil fuels accounted for only 5% of new energy capacity in 2024, that figure is projected to rise to 30% by the second quarter of 2026. If this trend continues, planned fossil fuel capacity will reach 68 gigawatts by 2030—a 45% increase compared to forecasts made just six months ago.
Economic and Environmental Risks
Experts warn that this strategy may lead to long-term issues. While building natural gas plants is a political priority, renewable energy remains more economically viable. Specifically, the cost of solar and wind energy is between $68 and $69 per megawatt-hour, whereas new natural gas plants cost $90 per megawatt-hour. Furthermore, fossil fuels are highly sensitive to price volatility, which is particularly evident against a backdrop of geopolitical tension.
Impact on the Tech Sector
The development of artificial intelligence (AI) and the expansion of data centres have sharply increased energy consumption. Tech giants operating in the American market may face rising electricity costs and unstable supply. While many projects may not be realised if demand for AI servers proves excessive, the current trend clearly shows that energy policy is returning to traditional sources.
For readers in Georgia, this is significant because shifts in the global energy market directly affect energy prices and the development of the technology sector, including companies dependent on data processing and cloud services.