U.S. greenhouse gas emissions went up for the first time in three years in 2025, mainly due to a harsh winter at the start of the year and soaring electricity needs from data centers and crypto mining, based on a new report from the Rhodium Group.
Overall, emissions increased by 2.4 percent, reversing two years of decline and outpacing economic growth.
The colder temperatures pushed households to use more natural gas and other fossil fuels for heating, leading to nearly a 7 percent rise in residential fuel consumption compared to 2024.
Meanwhile, electricity demand surged as data centers and cryptocurrency operations rapidly expanded, especially in states like Texas and throughout the Ohio Valley.
As natural gas prices climbed, utilities started relying more on coal to satisfy the demand. Consequently, U.S. coal usage shot up by 13 percent last year, which is a stark contrast to what's happening in India and China, where coal-powered electricity generation has dropped as renewable energy sources have increased.
Analysts believe this change was more about switching fuels rather than being driven by policy shifts.
Solar energy also experienced impressive growth, jumping by 34 percent in 2025, marking its quickest increase since 2017. Although the transportation sector continued to be the biggest contributor to emissions, its output remained steady as sales of hybrid and electric vehicles rose.
Rhodium pointed out that the policies from the Trump administration didn't significantly affect emissions in 2025, but some experts think their influence might become more pronounced in the coming years.
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