John Kostyack

A new BNEF forecast predicts U.S. data center electricity demand will surge to 194 gigawatts by 2035, an 83% increase from its forecast of just eight months ago. Hyperscale data centers installed to date are already causing significant environmental and financial harm, and this projected growth could cause much greater damage. Fortunately, a powerful new environmental movement is emerging and is well-positioned to win policy guardrails. 

Pension trustees have a fiduciary duty to assess these and other strategies for mitigating systemic climate risks to their portfolios. Once they conclude that the tech industry’s energy-intensive and fossil fuel-reliant strategy for data center buildout is generating systemic risks that can be averted with a shift in strategic direction, it is their duty to seize the opportunity to help bring about that shift.