Grace Nolan, grace@team-arc.com
Washington, D.C. – After two decades of staying relatively flat, states throughout the country are seeing sharp increases in demand for electricity. This demand is driven in large part by new data center load growth due to generative artificial intelligence, technology manufacturers, and electrifying industries. As a consequence, utilities with growing demand projections have proposed extending obsolete and dirty coal plant operations or building new gas plants, putting climate goals at risk. Many of the largest tech companies have climate goals and want clean energy, but the reality is their impact on the grid is stunting recent gains in the ongoing transition to clean energy.
Today, the Sierra Club releases Demanding Better, a guide for how to meet increasing demand for electricity while decreasing climate pollution. The report details opportunities for how leading tech companies can support a clean grid for everyone.
“Over the last decade, corporate energy customers have been some of the strongest private-sector voices for clean energy, so it’s ironic that utilities are pointing to these customers as the reason for delaying coal retirements or plans for new gas-burning power plants,” said Jeremy Fisher, Principal Advisor for Climate and Energy at Sierra Club and report co-author. “This guide is really a call-to-action for large electricity customers to demand that utilities meet their requirements for clean energy, because for many, buying renewable credits in a far away place is no longer sufficient.”
Demanding Better details pathways and policies for new large load customers like data centers, technology manufacturers, and electrifying industries. Large electric load customers, along with utilities, regulators, lawmakers, and advocates, must collaboratively and transparently develop both clean energy and clean capacity solutions. These solutions include implementing 24/7 carbon-free energy to advanced green tariffs, direct engagement with utilities, and advocating for state and federal policy options, like clean energy standards. Demanding Better’s solutions are designed to benefit all electricity customers, including residential ratepayers, by advancing services that integrate and balance low-cost renewable energy.
Sierra Club analysis of the largest utilities finds they expect to build more than 90 gigawatts of new gas-fired power plants between now and 2035.
“In this pivotal moment of the climate crisis, it is unacceptable that utilities are proposing to build gas plants or threatening to delay coal retirements to meet load growth,” said Laurie Williams, Director of Sierra Club’s Beyond Coal Campaign. “By adopting the common sense recommendations in Demanding Better, utilities can sustainably meet increased demand with reliable and clean electricity, without increasing costs on other customers.”
Solutions to meet the needs of all customers include improved utility planning practices, like transparency, to mandatory clean energy standards. Solutions also include consumer protections so existing customers do not assume financial risk of stranded assets should utilities overbuild, and these solutions must be implemented while aligning the interests of all electric customers, as well as utilities. Sierra Club is also launching a public petition demanding better of tech companies, which people can find at www.sc.org/cleanupthecloud.
"Virginia knows firsthand what data center development looks like when there is a lack of transparency in the communities that are forced to subsidize their development," said Ann Bennett, volunteer Data Center Issue Chair for the Sierra Club Virginia Chapter. "Leaders at all levels of government must acknowledge that without changes or safeguards, we are facing a data center-induced energy and pollution crisis."
Sierra Club recommends that large users of electricity focus their investments where utilities are currently leading on clean energy, including future plans for decarbonizing, which is detailed in our Dirty Truth About Utility Climate Pledges report that will be updated this October. It’s critical that large load customers, like tech companies, engage in the utility energy planning processes, state and federal legislative processes, and state and federal regulatory processes.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.