Anthropic is burning gas to feed the AI boom
Anthropic’s planned expansion of AI data centres depends in part on electricity generated by natural gas, mostly methane, according to its US regulatory filing ahead of a potential public offering. The disclosure highlights how the AI boom may deepen reliance on fossil fuels, while energy supply constraints and climate impacts could also make it harder and more expensive for the company to grow.
Anthropic says competition for electricity, data centre sites, gas and pipeline capacity could raise costs or delay projects. It announced a $50 billion expansion plan in Texas and New York, while shortages of gas turbines are already slowing construction and prompting some developers to generate power on-site. The filing also warns that hotter temperatures could increase electricity and water costs for cooling servers; US gas-fired power currently supplies 40 per cent of the nation’s electricity.
In short
- Anthropic’s data centre growth relies partly on gas-fired electricity.
- Fuel, power and pipeline constraints could raise costs or delay projects.
- Climate change may increase the electricity and water needed to cool servers.
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The case for
Using natural gas to power data centres can help meet rapidly growing electricity demand when grid capacity and other supplies are constrained. Supporters may argue that reliable power is essential for economic growth and AI development, and that gas generation can serve as a practical near-term source while infrastructure expands.
The case against
Building more gas-fired power risks locking in infrastructure that emits greenhouse gases and can worsen climate change, whose heat can itself raise data centres’ cooling and water costs. Critics may argue that the scale of AI’s energy needs makes it especially important to prioritise lower-carbon power and avoid making fossil fuel dependence harder to reverse.