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How AI could fuel a boom in carbon capture

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By illuminem briefings

· 3 min read


illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: The rapid expansion of artificial intelligence is driving up energy demand and could unexpectedly revive carbon capture and storage (CCS) as a key climate solution
As tech giants seek stable power sources to run data centers, utilities are turning to fossil fuels, sparking a push to integrate CCS as a way to align energy reliability with corporate climate goals
Companies like ExxonMobil, Entergy, and Tallgrass are planning CCS-equipped gas plants to serve major data center projects

🔭 The context: AI training requires vast computing power, with data centers emerging as significant energy consumers
While many tech firms have pledged net-zero emissions, the reliability of fossil fuel power remains attractive in regions with limited clean energy infrastructure
At the same time, the U.S. political environment under the Trump administration has shifted policy support away from renewables, bolstering fossil fuels and expanding tax incentives for CCS

🌍 Why it matters for the planet: Linking CCS with data centers could offer a pathway to decarbonize high-demand infrastructure—if the technology proves cost-effective and reliable
However, CCS on natural gas plants remains largely unproven at scale and is costlier than renewables
Critics argue this approach risks locking in fossil fuel dependency under the guise of innovation, delaying broader energy transitions
Nevertheless, it may serve as a transitional strategy in hard-to-electrify sectors and jurisdictions where renewable deployment faces political or logistical barriers

⏭️ What's next: Expect increased CCS project announcements tied to AI-driven data infrastructure, especially in regions with limited renewable access or political headwinds against clean energy
The coalition of tech and VC firms promoting advanced clean energy may also influence future investments
Key developments include whether CCS-equipped facilities can meet performance expectations and navigate public scrutiny
Regulatory approvals, tax incentives, and infrastructure build-outs—like CO₂ pipelines—will be critical in determining viability

💬 One quote: “If carbon capture is ever going to work, this is the environment in which it would work.” — Andrew Logan, Senior Director at Ceres

📈 One stat: ExxonMobil's proposed gas-powered data center aims to capture 90% of CO₂ emissions using CCS—a first at this scale for natural gas infrastructure.

Explore carbon credit purchases, total emissions, and climate targets of thousands of companies on Data Hub™ — the first platform designed to help sustainability providers generate sales leads!

Click for more news covering the latest on carbon capture & capture

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illuminem's editorial team, providing you with concise summaries of the most important sustainability news of the day. Follow us on Linkedin, Twitter​ & Instagram

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