US Builds More Fossil Fuel Infrastructure as Renewable Growth Slows
A report by the Environmental Defense Fund and Atlas Public Policy says power demand from data centers, factories and electric vehicles is rising faster than it has in more than a decade
By AXY Tech Desk ·
Key points
- A report by the Environmental Defense Fund and Atlas Public Policy finds the US is building more fossil fuel infrastructure than in a decade while renewable energy growth slows.
- Electricity demand is rising faster than in more than a decade, driven by data centers, factories and electric vehicles.
- The report warns that gas projects in the development pipeline could lock in pollution and higher electricity prices for decades, though renewables still gained ground in 2024.
The United States is building more fossil fuel infrastructure than it has in a decade, even as growth in renewable energy slows, according to a new report published last week by the nonprofit Environmental Defense Fund and the research firm Atlas Public Policy. The report finds that electricity demand is also rising faster than it has in more than a decade, as more data centers, factories and electric vehicles connect to the grid. The source material reports that the Trump administration has sought to weaken the wind and solar industries in favor of fossil fuels, and that America's energy landscape is already shifting as a result.
The report's authors warn that if every gas project in the development pipeline is completed, those facilities could lock in more pollution and higher electricity prices for decades. Their central message is that the choices being made now will shape the cost, reliability and emissions of the power grid for a long time. In the report's words, "The U.S. power sector is at a new inflection point, with decisions made today shaping the cost, reliability, and emissions profile of the grid for decades to come."
What the report found
The report's core finding is a divergence. New fossil fuel infrastructure is being built at a pace not seen in roughly ten years, while the expansion of renewable energy is losing momentum. The source material also notes that renewable energy projects are being canceled at a faster rate. Infrastructure in this context generally means physical assets such as power plants, gas turbines and the pipelines that supply them. These assets are expensive and designed to operate for decades, which is why the report focuses on the long-term consequences of projects approved today.
The Environmental Defense Fund is an established environmental advocacy and research group, and Atlas Public Policy is a firm that analyzes energy and climate policy. Their joint report is an analysis of the development pipeline, meaning projects that are proposed, permitted or under construction but not yet operating. Analysts commonly use pipeline data to forecast what the grid will look like in future years, because the projects already in motion largely determine the capacity that will be available later.
Why electricity demand is climbing
For much of the last two decades, total US electricity use was relatively flat, as efficiency gains in appliances and lighting offset population and economic growth. The source material says that has changed, with demand now rising faster than at any point in more than ten years. Three drivers are cited: data centers, factories and electric vehicles.
Data centers are large facilities filled with servers that store information and run online services, including cloud computing and artificial intelligence tools. They operate around the clock and require a constant supply of power, along with cooling systems that consume even more electricity. Manufacturing plants that expand or reshore production add to industrial load, and electric vehicles add demand when they charge, particularly if many charge at the same times of day.
The grid must match supply with demand at every moment, so a sustained increase in consumption requires either more generation or better management of existing resources. This is the basic tension the report highlights. If new demand arrives faster than new supply, utilities and grid operators must rely more heavily on whatever generation can be built or kept running, which can mean keeping older plants open or approving new gas-fired capacity.
Where the US power mix stands
The source material offers a useful picture of the current balance. The US still generates about 60 percent of its electricity from fossil fuels. Yet renewables have gained ground quickly. In 2024, wind and solar together produced more electricity than coal for the first time, according to the report. Solar was the fastest-growing source of new electricity generation that year, accounting for 81 percent of added capacity.
It is important to distinguish between generation and capacity. Generation refers to the actual electricity produced over a period, while capacity refers to the maximum output a plant can deliver. Solar and wind plants produce electricity only when the sun shines or the wind blows, so their share of total generation can be lower than their share of installed capacity. The statistic that wind and solar outproduced coal shows how much the mix has shifted, even though fossil fuels still supply the majority of power.
The report also notes that globally, solar has become the cheapest source of power in most of the world. That point helps explain why solar has been the leading source of new capacity, since cost is a major factor in investment decisions for utilities, companies and governments.
The policy debate
The source material states that the Trump administration has sought to hobble the wind and solar industries in favor of fossil fuels. Federal energy policy can influence the pace of development through permitting decisions, tax incentives, regulations and public land leasing, among other tools. When federal support shifts, developers reassess which projects are financially viable, and that can change which technologies reach construction.
This creates a apparent paradox that the report's framing highlights. Demand is rising quickly, and data center developers are seeking large, reliable amounts of power. Analysts often note that wind and solar can be built relatively quickly, but they need storage or other backup to supply power when it is needed most. Gas plants can provide firm, dispatchable power on demand, which is one reason they are attractive to utilities and to companies that need steady supply. The debate is therefore not only about climate goals but also about how quickly the grid can add reliable capacity.
Because the source material does not provide details of specific federal actions, this report does not attribute particular policies or dates to the administration beyond what is stated. Readers should look to the original reporting and official filings for the specifics of individual decisions.
What it could mean for households and the climate
The report's warning is that the projects approved now could shape costs for decades. If gas capacity is built on a large scale, the authors argue, it could raise electricity prices and produce emissions over the operating life of those plants. Fuel prices, which are volatile, would then feed directly into bills for customers. Because power plants are long-lived assets, a decision made today can affect pollution levels and household costs well into the future.
For climate goals, the stakes are straightforward. Fossil fuel plants emit carbon dioxide when they burn gas or coal, and a large expansion of gas capacity would make it harder to reduce emissions from the power sector. At the same time, the rapid growth of solar, which the report describes as the fastest-growing source of new generation, suggests that clean power is still expanding. The question is whether that growth can keep pace with rising demand and whether storage and grid upgrades arrive in time.
Reliability is another concern. A grid that adds demand quickly must maintain stable voltage and frequency, and that requires planning for peak periods, transmission capacity and backup supply. The report's emphasis on reliability reflects this challenge.
What to watch next
Several developments will show whether the trends described in the report continue. Analysts will watch whether gas projects in the development pipeline move from proposal to construction, and whether renewable projects are canceled or delayed further. They will also look at utility plans and state regulatory filings that show how much capacity companies expect to need, and at agreements between data center operators and power providers.
Another signal will be the pace of new solar and wind additions, along with the growth of battery storage, which can help renewables deliver power when demand peaks. Grid operators' long-term forecasts, which update as projects are approved or withdrawn, will indicate whether supply is keeping up with demand.
The source material makes clear that the report is a snapshot of a rapidly changing system. Its authors argue that decisions taken now will carry consequences for decades, and the next few years of project approvals, cancellations and demand growth will reveal which path the US power sector is taking.
Questions and answers
What did the new report on US fossil fuel infrastructure find?
The report, published by the Environmental Defense Fund and Atlas Public Policy, found the US is building more fossil fuel infrastructure than it has in a decade while renewable energy growth slows. It also found electricity demand is climbing faster than it has in more than a decade.
Why is electricity demand rising in the US?
According to the source material, demand is growing as more data centers, factories and electric vehicles connect to the grid. Data centers run continuously and need large, steady amounts of power.
What could happen if gas projects in the pipeline are completed?
The report's authors warn that completed gas projects could lock in more pollution and higher electricity prices for decades. The choices made now will shape the cost, reliability and emissions of the grid for years to come.
Topics: fossil fuels, renewable energy, data centers, electricity demand, Environmental Defense Fund, Atlas Public Policy, solar power, US power grid
Sources: The Verge