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A recent analysis has revealed a troubling trend in the United States: greenhouse gas emissions increased in 2025 for the first time in three years, driven primarily by a harsh winter and the escalating energy needs of data centres and cryptocurrency mining. This rise comes despite advancements in renewable energy, signalling a complex interplay between climate policy, energy demand, and economic factors.
An Unwelcome Return to Coal
The cold weather at the outset of 2025 resulted in a notable spike in fossil fuel consumption as households turned to natural gas for heating. The analysis from the Rhodium Group indicates that heating demands surged nearly 7% compared to the previous year, leading to a significant reliance on coal, which saw a striking 13% increase in usage. This was not an isolated phenomenon; similar increases in fossil fuel consumption were observed across regions where data centres and cryptocurrency operations proliferate, notably in Texas and the Ohio Valley.
Michael Gaffney, the report’s lead author, elucidates that the additional demand for electricity was met partly by renewable sources but predominantly through fossil fuels due to the high prices of natural gas. He states, “The grid decided to meet that additional load this year, in part with renewables, in part with fossil but because of higher natural gas prices, there was some fuel switching that saw marginally more coal than there was in 2024.”
Data Centres and Cryptocurrency: Engines of Emission Growth
The explosive growth of data centres and cryptocurrency mining is reshaping energy consumption patterns in the US. As these sectors expand, so does their appetite for power, straining the electrical grid and prompting a shift back to coal, which has been largely sidelined in previous years due to low natural gas prices. Jesse Lee from Climate Power notes, “Higher natural gas prices mean that finally, coal, which had been kind of driven to extinction by low natural gas prices, is now worthwhile again.”
Last year marked a pivotal moment, as the trend of coal power generation, which had decreased by 64% since 2007, saw a rare uptick. This resurgence is compounded by a slowdown in the retirement of coal plants, as utility companies postponed closures to accommodate rising demand.
Renewable Energy Struggles Amidst Rising Emissions
Despite these setbacks, the growth of solar energy cannot be overlooked. The US saw a remarkable 34% increase in solar power generation last year, marking the fastest growth rate since 2017. However, this progress is overshadowed by the overall increase in emissions, which rose by 2.4%—outpacing economic growth.
Transportation remains the largest contributor to greenhouse gas emissions in the US, although emissions from this sector remained relatively stable in 2025 due to the rising adoption of electric and hybrid vehicles. The number of hybrids on the roads surged by 25% compared to the previous year, indicating a slow but positive shift towards cleaner alternatives.
The Political Landscape and Its Impact
Despite the climate policies enacted during the Trump administration aimed at boosting fossil fuel extraction, analysts from Rhodium suggest that these measures had minimal impact on the emissions landscape in 2025. However, the influence of these policies is still a topic of debate. Some experts argue that the explosion of data centres cannot be entirely divorced from the political climate, suggesting that current policies may inadvertently fuel this growth and its associated emissions.
As Michael Gaffney aptly puts it, “It’s more than just a blip. This is a response to the demand growth in the sector, and a lot of it is coming from data centres, cryptocurrency operations, and other large load customers. That demand growth is here to stay.”
Why it Matters
The increase in greenhouse gas emissions in the United States represents a critical point in the ongoing battle against climate change. As data centres and cryptocurrency operations continue to flourish, the energy demands they impose could undermine progress made in renewable energy adoption. The revival of coal, driven by market dynamics and energy policy, poses a significant threat to climate goals. This situation calls for urgent and innovative solutions to balance energy demands with environmental responsibility, ensuring that the fight against climate change is not left in the cold.
