A recent analysis reveals that U.S. emissions of greenhouse gases have risen for the first time in three years, driven by increased energy demands from homes, data centers, and cryptocurrency operations. This uptick comes amid an exceptionally cold start to 2025, which has heightened the reliance on fossil fuels for heating and electricity generation.
With significant implications for climate policy and energy consumption, this rise in emissions follows two consecutive years of decline. Experts highlight that while renewable energy sources like solar power saw remarkable growth, the demand for fossil fuels has reasserted itself under current economic conditions.
Key Developments
- U.S. greenhouse gas emissions increased by 2.4% after two years of decreases.
- Heating demands surged nearly 7% due to low temperatures, leading to greater natural gas and coal usage.
- Coal consumption climbed by 13%, marking the first growth in a decade.
- Electric power demand surged due to the expansion of data centers and cryptocurrency mining operations.
- Despite a significant increase in solar energy production (up 34%), emissions from transport, particularly road traffic, remained stable.
Full Report
Rising Demand and Emissions
The analysis, conducted by Rhodium Group, indicates that last year, residential heating saw increased consumption of natural gas even as coal use skyrocketed to meet rising electricity demands. The 13% rise in coal usage is particularly striking, especially when contrasted with trends in India and China, where coal use for electricity has decreased. According to Michael Gaffney, lead author of the report, high natural gas prices contributed to a shift back towards coal as a more economically viable option.
Data Centers and Cryptocurrency
The demand from data centers and cryptocurrency mining in regions like Texas and the Ohio Valley has played a crucial role in this increase. As Gaffney notes, this demand is not just a temporary spike; it reflects a continuing trend that will likely persist, driving up power requirements in the sector.
Transportation Emissions
Transport remains the largest source of greenhouse gas emissions in the United States, but despite increasing road traffic volumes, emissions from this sector held steady due to the rising adoption of hybrid and electric vehicles. Notably, the number of hybrids grew by 25% compared to 2024, reflecting a shift towards cleaner transportation options.
Political Context
While the Trump administration attempted to roll back environmental policies, Rhodium analysts noted that these actions had little impact on the rise in emissions in 2025. Some critics argue that the ongoing boom in data centers and support for fossil fuel production, under previous and current administrations, cannot be overlooked in discussions about rising emissions.
Context & Previous Events
Since 2007, coal power generation in the U.S. has decreased considerably, falling by 64%. The recent uptick in coal use, however, is only the second recorded increase in a decade. The report also indicates a slowdown in the retirement of coal plants, with companies opting to delay closures to meet the growing demands for electricity.
