Rising Emissions Surge Past Economic Growth in 2025

U.S. greenhouse gas emissions increased by 2.4% in 2025, surpassing economic growth. The rise was mainly due to higher power sector demands and fuel use for heating. Notably, the demand for electricity in data centers resulted in a resurgence of coal generation, while the Trump administration's policies influenced environmental regulations.

In 2025, U.S. greenhouse gas emissions rose for the first time in two years, exceeding the rate of economic growth with a 2.4% increase. This surge, highlighted in a report by Rhodium Group, was largely driven by higher demand in the power sector and the use of fuel for heating buildings.

The report indicates a notable 6.8% rise in emissions from fuel use for building heating and a 3.8% increase in power sector emissions, attributed to coal-fired generation meeting the demands of data centers and bitcoin mining. Environmental policy changes under the Trump administration have not yet reflected in these figures, potentially influencing future trends.

The continued expansion of data centers for artificial intelligence has pressured the power grid, resulting in a 13% increase in coal usage, reversing the previous decline trend. The report also mentioned possible effects of repealed federal tax credits on the electric vehicle market, which has helped temper transportation emissions.

(With inputs from agencies.)