'Makes it even more disappointing': Microsoft backs fossil fuel big time with $7 billion deal in race for AI supremacy

Date:
Wed, 15 Apr 2026 20:35:00 +0000

Description:
Microsofts AI expansion is driving large-scale methane gas deals, increasing emissions, and raising concerns about energy costs, health risks, and climate commitments

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Tech Radar Pro Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Become a Member in Seconds Unlock instant access to exclusive member features. Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. You are
now subscribed Your newsletter sign-up was successful Join the club Get full access to premium articles, exclusive features and a growing list of member rewards. Explore An account already exists for this email address, please log in. Subscribe to our newsletter Microsoft signs massive methane gas deals to sustain growing AI workloads AI expansion is driving hyperscalers toward faster fossil fuel power solutions Microsofts data center emissions are projected to rise sharply by 2028 Microsoft has signed a series of methane gas-powered AI data center deals totaling nearly 5 gigawatts of capacity, marking a departure from the company's climate goals.

The race for AI supremacy is driving hyperscalers to lock in any available power, and Microsoft has turned to fossil fuels to keep its AI tools running without delay. The agreements include an exclusive partnership with oil giant Chevron for a 2.5 gigawatt plant near Pecos, Texas, alongside additional facilities in Abilene, Texas, and Mason County, West Virginia. Article continues below You may like Energy hungry Big Tech turn to carbon credits to fuel data centers while remaining committed to net-zero emissions Microsoft and Nvidia team up to use AI to reduce nuclear project bottlenecks Microsoft unveils Maia 200, its 'powerhouse' accelerator looking to unlock the power of large-scale AI The gap between promises and actions Research by Stand.earth Research Group claims these projects will increase Microsoft's data center carbon footprint by 160%, reaching approximately 25.25 million metric tons of COe by 2028.

"Microsoft makes great claims about its climate credentials, which makes it even more disappointing to see the company turn toward fossil fuels," said Rachel Kitchin, Senior Corporate Climate Campaigner at Stand.earth.

Three years after its 2020 climate pledge to become carbon negative by 2030, Microsoft's emissions had already increased by at least 30%.

Microsoft President Brad Smith recently declared he was "confident in our ability" to meet the 2030 goal. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news
and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

At the end of 2024, on-site data centers made up only 5% of all demand for methane gas power being developed in the United States - one year later, this figure ballooned to 39%, as demand for training and running LLMs accelerated faster than renewable capacity could be built.

Developers claim that behind-the-meter methane gas eliminates the burden on existing utility customers - however, industry analysts warn that data center demand has already increased consumer electric bills.

A Virginia Commonwealth University study found that on-site methane gas for a single data center could lead to $53 to $99 million in health-related costs. What to read next Microsoft CEO encourages making AI useful lest people lose patience Want the latest AI news? Here are the biggest stories from the past week Maia 200 points to a future where laptops arent held hostage by AI

A 2021 Harvard University study also found that one in five deaths globally can be linked to air pollution from burning fossil fuels.

Research also suggests data centers may raise local temperatures , indirectly increasing electricity bills through higher home cooling demand.

Microsoft claims to match 100% of its electricity demand with renewables, but these claims are based on energy markets that do not require direct delivery to its data centers.

The gap between what Microsoft says and what Microsoft does appears to grow wider by the day.

Renewables are cheaper than fossil fuels, which makes Microsoft's pivot
toward methane gas for its AI tools difficult to defend. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button!

And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.



======================================================================
Link to news story: https://www.techradar.com/pro/makes-it-even-more-disappointing-microsoft-backs -fossil-fuel-big-time-with-usd7-billion-deal-in-race-for-ai-supremacy


--- Mystic BBS v1.12 A49 (Linux/64)
* Origin: tqwNet Technology News (1337:1/100)