Meta’s natural gas binge could power South Dakota

As technology companies expand their operations, their energy needs have grown significantly, leading to power demands comparable to entire U.S. states. A prime example is Meta’s upcoming Hyperion AI data center, which is projected to consume as much electricity as South Dakota upon completion. Last week, Meta disclosed plans to invest in seven additional natural gas power plants, adding to the three already in the pipeline to support the colossal $27 billion data center project. Collectively, these ten plants located in Louisiana are expected to produce approximately 7.5 gigawatts of energy, exceeding the total energy capacity of the Mount Rushmore State. Despite its history of promoting sustainability and environmental responsibility, including regular sustainability reports and notable renewable energy acquisitions, the decision to heavily invest in natural gas is raising eyebrows. Meta has previously been a leading advocate for solar, batteries, and nuclear power, making this shift towards natural gas puzzling. Natural gas is often labeled as a “bridge fuel,” intended to support the transition to more sustainable energy solutions. However, critics argue that this rationale is becoming increasingly unconvincing. While the cost of renewables and battery technology has significantly decreased, the expenses associated with gas turbines have surged. According to calculations from TechCrunch, the new turbines in Louisiana are expected to release 12.4 million metric tons of CO2 annually—50% greater than Meta’s total carbon emissions for 2024, based on the latest available data. This estimate does not account for methane leaks from the natural gas supply chain, which can exacerbate climate change since methane is more potent than CO2 in terms of warming potential. Current estimates suggest that methane leakage rates in the U.S. could be as high as 3%, raising serious questions about the environmental impact of relying on natural gas as a primary energy source. Alarmingly, Meta’s recent sustainability report fails to address methane emissions or leaks associated with natural gas, despite it potentially becoming a significant contributor to the company’s carbon footprint in the near future. While Meta may seek to adhere to its climate commitments by investing in carbon removal credits, the company faces the challenge of accurately accounting for the methane emissions from its power plants. The path forward will require transparency and a re-evaluation of its energy strategy to align with its stated environmental goals.