Microsoft (MSFT) is considering using natural gas with carbon capture technology to power its future artificial intelligence (A.I.) data centers.
In an interview with CNBC, Bobby Hollis, Microsoft’s vice-president of energy, said when asked about powering A.I. data centers with natural gas, “That absolutely would not be off the table.”
However, he quickly added that using natural gas with carbon capture would only happen if it was deemed “commercially viable and cost competitive.”
Oil and gas companies have been developing carbon capture technology for years. The process captures carbon dioxide emissions from industrial sites and stores them deep underground.
Widespread adoption of carbon capture at a commercial scale hasn’t happened because of the high costs associated with such projects.
Microsoft has said that it plans to spend about $80 billion U.S. this year building out it’s A.I. infrastructure, including data centers.
The Seattle-based technology giant also has ambitious goals to address climate change, aiming to match all of its electricity consumption with carbon-free energy by 2030.
Last year, Microsoft proposed using nuclear energy to power it’s A.I. data centers, going so far as to sign a deal to support the restart of the Three Mile Island nuclear reactor.
Data center developers consider natural gas to be a near-term power solution despite its carbon dioxide emissions.
Exxon Mobil (XOM) and Chevron (CVX) have each announced plans to enter the data center space with plans to develop natural gas plants and accompanying carbon capture technology.
Microsoft’s stock has declined 8% over the last year and currently trades at $380.45 U.S. per share.
