By Ross McKenzie, EVP and Co-Leader at Elimini
As the digitization and electrification of the global economy continues to accelerate, the energy footprint of the tech sector is climbing fast. Data centers – the backbone of cloud computing, AI, and other advanced technologies – are emerging as some of the world’s most power-intensive facilities. In fact, the IEA projects a 4% increase in global power demand through 2027, fueled significantly by data centers.
This boom creates two critical challenges for technology companies – each with direct consequences for competitiveness and long-term success:
- Power demand crisis: Access to reliable, affordable electricity is becoming a defining factor in the AI race. Without it, companies risk slower innovation, delayed products, and falling behind rivals who can scale faster.
- Climate crisis: Rising power use increases emissions, and companies without credible decarbonization strategies risk reputational damage, weakened customer loyalty and investor confidence, and challenges to their broader license to operate.
Tech companies that solve both will gain a decisive competitive edge. Those that don’t will not only fall behind but also risk backlash if rising demand pushes costs onto consumers.
The Renewable Reality: Scale, Speed, and Storage Gaps
In response to soaring demand, many tech companies are doubling down on renewable energy. Some are building projects co-located at data centers, others are locking in power purchase agreements – and many are doing both. Meta, for example, invested $900 million into solar plants across Texas to power its data centers.
But the limits are becoming clear. The U.S. Department of Energy projects demand could increase up to 580 TWh by 2028, or nearly double the current output of all U.S. solar panels. Solar and wind remain intermittent sources of energy that require significant storage and grid infrastructure to deliver round-the-clock energy. Nuclear builds take decades. And fossil fuels remain the short-term fallback – viewed as an unavoidable, temporary fix at the expense of climate progress.
For tech companies, this creates a widening gap: the need for firm, 24/7 power solutions that can be deployed quickly and responsibly against the backdrop of ambitious net-zero pledges. Failing to reconcile power needs with sustainability commitments risks not only missing climate targets, but damaging public trust, investor confidence, and long-term competitiveness.
Closing the Gap Between Energy Demand and Climate Commitments
As tech companies confront the reality that renewables alone cannot fully meet rising demand, many are turning to carbon removals as part of their climate strategy. These investments are designed to bridge the gap between rising energy needs and ambitious net-zero commitments.
Carbon dioxide removals (CDRs) offer clear advantages: reputational differentiation, stronger customer loyalty, a pathway to manage regulatory and supply chain risks, and reinforcement of a company’s license to operate. It’s why leaders like Microsoft are already investing heavily in this space.
Removals aren’t a silver bullet, however. They don’t necessarily address the local cost impacts of higher electricity demand. Take Virginia, where a concentration of data centers has already driven up local electricity rates.
That’s why climate strategies must combine carbon removal with new, responsible energy generation to balance decarbonization with local impact.
The Potential of BECCS for Tech
Tech companies are already experimenting with high-integrity carbon removal solutions to demonstrate climate leadership. Biochar, for example, can sequester carbon in soils while providing modest energy benefits – but most of these approaches are not designed to generate large-scale reliable power.
Bioenergy carbon capture and storage (BECCS) stands apart because it’s uniquely positioned to tackle both crises at once. It generates 24/7 renewable power to support grid stability while also removing carbon from the atmosphere. This dual benefit explains why BECCS now dominates the voluntary carbon market, accounting for 74 percent of all-time engineered CDR transactions in Q2 2025.
BECCS is also increasingly attractive from a cost perspective – from CDR revenue streams and power sales to government incentives, such as tax credits like 45Q. At the same time, its potential depends on early investment. Without near-term commitments, many projects may never be built, limiting future credit supply as demand grows.
Momentum is building, however, with new partnerships like BioCapture Copenhagen – Elimini’s agreement with HOFOR, a municipal utility in Copenhagen – which aims to capture hundreds of thousands of tonnes of CO₂ annually while also generating renewable electricity and heat.
The Future of Tech Will Run on Dual-Purpose Energy
For tech leaders, the path forward is clear: securing enough power to stay ahead in the AI race while proving sustainable growth is crucial. Dual-purpose solutions like BECCS make both possible – simultaneously removing carbon and delivering reliable energy. The companies that act now and invest in these solutions will not only lead on sustainability, but they’ll also shape the next era of tech growth.
To learn how Elimini’s focus on high-integrity carbon removals can help your business scale climate impact, visit elimini.com/tech.
10/29/25