White paper points to carbon capture as possible data center solution

Emma Penrod | Source: Utility DIVE | Posted 04/01/2025

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Pairing carbon capture with natural gas-fired generation could prove cost-competitive with other baseload options, like nuclear and battery storage, according to a Carbon Direct white paper.

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A recent white paper from Carbon Direct highlights the potential of integrating carbon capture with natural gas generation as a viable low-carbon solution for large data centers seeking reliable, off-grid electrical supply. This approach could deliver power at competitive rates of $70-100/MWh, making it an attractive option alongside other low-carbon electricity sources. As data centers expand, they are increasingly interested in solutions that minimize interconnection delays and carbon emissions, positioning carbon capture as a significant consideration for operators.

Large AI data centers, which often require over 1 GW of electricity, face challenges related to timely deployment and emissions reduction. Carbon Direct's analysis indicates that new gas generation with carbon capture can be operational in under 24 months, appealing to data center operators. While there are limitations regarding carbon storage and transportation, the financial incentives from the Inflation Reduction Act make this integration more feasible. Ultimately, the speed of deployment and interconnection reform will significantly influence data center preferences in power sourcing.

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White paper points to carbon capture as possible data center solution

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