The potential rise of Carbon Capture Storage (CCS) technology as tech giants increasingly turn to natural gas for powering data centers?

In the United States, a significant shift is underway as companies explore the use of carbon capture technology (CCS) in various sectors, particularly natural gas power plants and data centers.

Companies like Summit Carbon Solutions and Petra Nova, a joint project by NRG Energy and JX Nippon Oil & Gas Exploration, are pioneering the implementation of CCS at natural gas power plants. This move is part of a broader initiative by the nation's largest tech companies to achieve net-zero carbon emissions in the coming decades.

However, the cost of incorporating CCS is a factor to consider. While estimates vary, adding the technology is currently more expensive than not using it. Retrofitting existing natural gas plants with CCS equipment or installing the technology on a "greenfield" facility each come with their own set of trade-offs.

The potential benefits of CCS are substantial. According to a June report from Carbon Direct, natural gas with CCS could meet as much as 63 percent of projected U.S. data center power demand. This is particularly relevant given the rising electricity demand due to a growing corporate push for artificial intelligence.

Exxon Mobil has announced plans for a 1.5-gigawatt gas plant that would generate "high-reliability electricity" for a data center, using CCS to trap an estimated 90 percent of the facility's CO2 emissions. Companies like Chevron and Entergy Louisiana are also considering CCS as part of their energy solutions. Entergy Louisiana plans to build three new gas turbines to support a data center campus in Louisiana, with the potential for future CCS upgrades.

Google and Microsoft, two tech giants, include carbon capture when evaluating their climate goals. The emissions associated with AI are a "consistent focal point" for these hyperscalers, as customers of data centers are increasingly asking for power with a lower carbon intensity.

Employees at companies like Microsoft care strongly about climate as an issue. The Trump administration, however, has taken a different approach, pressuring utilities, grid operators, and data centers to rely on fossil fuels. Despite promoting the use of AI and data centers, the administration has downplayed efforts to cut greenhouse gas emissions.

In Wyoming and Louisiana, large data center projects are being built with carbon capture in mind. As the world moves towards a more sustainable future, the role of CCS in meeting energy needs while reducing carbon emissions is becoming increasingly significant.

The potential rise of Carbon Capture Storage (CCS) technology as tech giants increasingly turn to natural gas for powering data centers?