California Data Centers Drive Surging Power Demand, Boosting Fossil Fuel Reliance Despite Renewables Push

California’s rapidly expanding data center sector, fueled by artificial intelligence workloads, is straining the state’s power grid and reinforcing reliance on natural gas. With nearly 300 centers in operation and more planned, projections indicate that by 2030, these facilities could require electricity equivalent to an additional city the size of Los Angeles. Renewable energy sources remain expensive and slow to scale, pushing operators to rely on fossil-fueled plants, many located in disadvantaged communities with high pollution levels. Gas plant operators are advocating carbon capture retrofits to qualify for clean energy credits, though these projects are costly, energy-intensive, and fail to address methane leaks or certain pollutants. While battery storage and grid interconnections offer partial solutions, experts warn that the accelerating demand from AI workloads could outpace clean energy deployment. Regulators face a complex challenge: balancing economic growth, AI innovation, and California’s long-term climate and emissions targets.

07-10-2025