Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Energy

Data Centers and Natural Gas Are Bending the Climate Transition Curve, IEA Says

The group’s latest World Energy Outlook reflects the sharp swerve in U.S. policy over the past year.

The Statue of Liberty and a natural gas flare.
Heatmap Illustration/Getty Images

The United States is different when it comes to energy and fossil fuels. While it’s no longer the world’s largest greenhouse gas emitter, no other country combines the United States’ production and consumptive capacity when it comes to oil — and, increasingly, natural gas. And no other country has made such a substantial recent policy U-turn in the past year, turning against renewables deployment at the same time as it is seeing electricity demand leap up thanks to data centers.

All of this is mirrored in the International Energy Agency’s 2025 World Energy Outlook, released Wednesday, which reflects a stark portrait of how America’s development of artificial intelligence and natural gas has made it distinct from its global peers. In combination, the effects of the One Big Beautiful Bill Act and the U.S.’s world-leading artificial intelligence development have meaningfully altered the group’s forecasts of global fossil fuel usage and emissions.

Much of the report compares two different scenarios for global energy usage and emissions — one looking at what governments are actually doing, and the other at what they say they want to do. The difference between the two is in the pace of the renewables buildout, and especially the pace at which fossil fuels’ place in the energy supply is wound down, if it is at all.

For example, the Current Policies Scenario (the stricter scenario) shows “demand for oil and natural gas continu[ing] to grow to 2050,” while the Stated Policies Scenario, or STEPS (the more optimistic one) shows oil use flattening “around 2030.” But in both cases, “gas demand continues growing into the 2030s, due mainly to changes in U.S. policies and lower gas prices.”

Charts of demand for coal, oil, and gas.International Energy Agency World Energy Outlook 2025

Even in the more optimistic outlook, natural gas use peaks later than it did in earlier forecasts. In 2035, the IEA projects, gas output will be 350 billion cubic meters greater than it projected last year, which is roughly equal to the annual gas production of Texas — and that’s in the optimistic scenario. “Three-quarters of this is for electricity generation, mainly in the United States, Japan and the Middle East, and reflects higher electricity demand and slower progress in adding renewables to the generation mix than projected,” the report says.

But the U.S. is not the whole story — the tide of renewable deployment continues apace. The clean energy analytics group Ember argues that the report’s “downgrades on clean growth in the U.S. are offset by rises in other countries,” especially as electric vehicles grow in popularity everywhere else. While the STEPS forecast shows a 30% drop in renewables capacity compared to last year’s projection in 2035 in the US (and a 60% drop in EVs on the road in 2035), “there are 20% more EVs projected in emerging markets outside China and the renewables forecast was also upgraded outside the U.S,” Ember said in a statement.

Ember attributes this to an “increasing focus on energy security,” with more countries following China in electrifying broader swathes of their economies in order to reduce their dependence on fossil fuel imports like natural gas, coal, and oil — including from the United States.

Similarly, Ember is sanguine about artificial intelligence throwing off projections for the wind-down of fossil fuels, which the IEA has and continues to portray generally as largely a U.S. phenomenon.

The IEA estimates that over 85% of global data center capacity growth will take place in the United States, China, and Europe, and that data centers will be responsible for only 6% to 10% of electricity demand growth in the EU and China through 2030. In the U.S., however, they’re responsible for about half of projected growth.

But it’s not just data centers that are causing the IEA to revise its figures. The IEA upped its forecast for electricity use in 2035 by 4% compared to last year, which amounts to some 1,700 terawatt-hours, a bit south of India’s annual electricity generation today. The group attributes this upward move in its forecast not just to “electricity demand to serve data centres” — which dominates discussion of energy use and climate change — but also to “higher demand for air conditioning in the Middle East and North Africa.”

While the economic benefits of artificial development are still necessarily speculative — with trillions of dollars of investment leading us potentially to a singularity of exponentially increasing technological development, machine-led human extinction, or somewhere in between — the benefits of air conditioning are far less so. With increased AC usage, even as temperature rises, heat-related mortality could fall.

And as the Global South heats and grows economically, its demand for and ability to procure air conditioning will grow, leading to higher energy usage and putting more pressure on the climate. The IEA figures square with another recent report from the climate and energy think tank Rhodium Group, which predicts a rise in emissions after 2060 due to economic development in the Global South.

In short, the energy consumption that feeds economic development all over the world is making the hottest parts of the world hotter while also enabling them to use more energy to cool their homes. At the same time, the richest parts of the world are increasing their electricity usage — and therefore their emissions — in order to develop a technology they hope will supercharge economic growth. The climate hangs in the balance.

Yellow

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
AM Briefing

AM Briefing: Gate Is ‘Still an Optimist’

On a $6 billion EV write-down, a disappointing bullet train, and talks on a major mining merger

Bill Gates.
Heatmap Illustration/Getty Images

Current conditions: Nearly all of Australia is under a heat warning as wildfires continue to burn • 65,000 properties in the United Kingdom lose power due to Storm Goretti • Two tornadoes ripped through Oklahoma on Thursday, the first in the U.S. in 2026.

THE TOP FIVE

1. Bill Gates: ‘I am still an optimist’

After writing a memo last year that shook up the climate community with its call for a pragmatic “pivot,” Microsoft founder and philanthropist Bill Gates published another missive Friday morning laying out his ideas on global problems — and their solutions. The bulk of his “The Year Ahead: Optimism with Footnotes” letter touches on his primary philanthropic concern, global public health, and he laments that “the world went backwards last year on a key metric of progress: the number of deaths of children under 5 years old.” Across both public health and climate change, he maintains his characteristic optimism about innovation (now, innovation buoyed by artificial intelligence), but says that “my optimism comes with footnotes.”

Keep reading...Show less
Green
Climate

Can Trump Exit a Senate-Approved Treaty? The Constitution Doesn’t Say.

Two international law experts on whether the president can really just yank the U.S. from the United Nations’ overarching climate treaty.

Trump plucking America from the United Nations logo.
Heatmap Illustration/Getty Images

When the Trump administration moved on Wednesday to withdraw the U.S. from the United Nations Framework Convention on Climate Change, we were left to wonder — not for the first time — can he really do that?

The UNFCCC is the umbrella organization governing UN-organized climate diplomacy, including the annual climate summit known as the Conference of the Parties and the 2015 Paris Agreement. The U.S. has been in and out and back into the Paris Agreement over the years, and was most recently taken out again by a January 2025 executive order from President Trump. The U.S. has never before attempted to exit the UNFCCC — which, unlike the Paris Agreement, it joined with the advice and consent of the Senate.

Keep reading...Show less
Green
AM Briefing

AM Briefing: A Broken Framework

On Venezuela’s oil, permitting reform, and New York’s nuclear plans

Donald Trump at the United Nations.
Heatmap Illustration/Getty Images

Current conditions: Cold temperatures continue in Europe, with thousands of flights canceled at Amsterdam Schiphol Airport, while Scotland braces for a winter storm • Northern New Mexico is anticipating up to a foot of snow • Australia continues to swelter in heat wave, with “catastrophic fire risk” in the state of Victoria.

THE TOP FIVE

1. Trump withdraws U.S. from United Nations climate change treaty

The White House said in a memo released Wednesday that it would withdraw from more than 60 intergovernmental organizations, including the United Nations Framework Convention on Climate Change, the international climate community’s governing organization for more than 30 years. After a review by the State Department, the president had determined that “it is contrary to the interests of the United States to remain a member of, participate in, or otherwise provide support” to the organizations listed. The withdrawal “marks a significant escalation of President Trump’s war on environmental diplomacy beyond what he waged in his first term,” Heatmap’s Robinson Meyer wrote Wednesday evening. Though Trump has pulled the United States out of the Paris Agreement (twice), he had so far refused to touch the long-tenured UNFCCC, a Senate-ratified pact from the early 1990s of which the U.S. was a founding member, which “has served as the institutional skeleton for all subsequent international climate diplomacy, including the Paris Agreement,” Meyer wrote.

Among the other organizations named in Trump’s memo was the Intergovernmental Panel on Climate Change, which produces periodic assessments on the state of climate science. The IPCC produced the influential 2018 report laying the intellectual foundations for the goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels.

Keep reading...Show less
Blue