U.S. greenhouse gas emissions increased for the first time in three years in 2025, driven by a particularly cold start to the year and the escalating energy demands of data centers and cryptocurrency operations, according to a new analysis by the Rhodium Group. The data revealed that residential natural gas consumption for heating rose significantly, and coal usage surged by 13% to meet the increased electricity demand.

Despite growth in solar power generation, overall greenhouse gas emissions rose by 2.4%, exceeding the rate of economic expansion, the Rhodium Group estimates indicated. The report noted that the policies enacted during the previous administration did not have a substantial impact on the emissions increase, but the authors anticipate policy changes in the coming years will influence future emissions trends.

In regions of the United States where natural gas is the primary heating source, the unusually low temperatures at the beginning of 2025 led to a nearly 7% increase in fuel consumption compared to the previous year. The surge in data centers and cryptocurrency mining, particularly in states like Texas and the Ohio Valley, also contributed to the heightened demand for electricity.

This rise in U.S. emissions occurs against a backdrop of global efforts to reduce greenhouse gas emissions under the Paris Agreement, an international accord aimed at limiting global warming. Many nations are grappling with the challenge of balancing economic growth with the need to transition to cleaner energy sources. The increase in U.S. emissions could potentially complicate international efforts to meet global climate targets.

The growth in data centers, fueled by increasing demand for cloud computing and artificial intelligence, presents a particular challenge. These facilities require significant amounts of electricity to power servers and maintain cooling systems. Similarly, cryptocurrency mining operations, which involve complex computations, are energy-intensive.

Experts suggest that addressing the rise in emissions will require a multi-faceted approach, including investments in renewable energy, improvements in energy efficiency, and policies to promote the adoption of cleaner technologies. The Rhodium Group's analysis underscores the importance of monitoring emissions trends and implementing effective strategies to mitigate the impact of economic activities on the environment.