New York: A new use for biogas produced from cow manure is emerging in the United States, with companies promoting it as a renewable energy source to power data centres and cryptocurrency mining operations. While supporters see it as a way to meet growing electricity demand and reduce reliance on fossil fuels, critics warn it could encourage the expansion of large-scale factory farms.
One of the first such projects is operating at Lent Hill Dairy Farm in Steuben County, New York. The farm houses around 4,000 cows and uses two large anaerobic co-digesters to convert cow manure and food waste into renewable natural gas (RNG). Instead of supplying only electricity, heating or vehicle fuel, the gas generated at the site is also being used to power an on-site cryptocurrency mining facility, The Good Men Project reported.
The project is operated by Pennsylvania-based Ag-Grid Energy, which believes manure-based biogas could help meet the rapidly rising electricity demand from data centres. The company says its system processes the manure from 4,000 cows and more than 45,000 gallons of food waste every day.
Ag-Grid Energy also plans to support small-scale data centres in rural areas by combining on-site power generation with fibre-optic connectivity.
The push comes as data centres account for nearly 4.9% of electricity consumption in the United States, with demand expected to double by 2030.
Large technology companies are also exploring renewable alternatives to fossil fuels for powering hyperscale data centres. Renewable natural gas has emerged as one of the options being promoted by companies involved in agriculture, utilities, waste management and the fossil fuel sector.
Microsoft has partnered with Enchanted Rock in California to use renewable natural gas as backup power for data centres, while Vanguard Renewables has described RNG as “the fuel of the AI age.”
However, environmental groups and researchers argue that relying on renewable natural gas could slow the transition to cleaner energy sources.
Sarah D’Onofrio, who works with communities affected by anaerobic digester projects, said RNG can be blended into existing natural gas infrastructure, allowing companies to claim lower emissions without replacing fossil fuel systems.
She argued that climate goals would be better served by moving directly to clean energy instead of renewable substitutes for fossil fuels.
Critics also warn that expanding manure-based energy projects could create a stronger financial incentive for large factory farms, increasing dependence on intensive livestock production.
According to estimates cited in the report, factory farms in the United States produce around 941 billion pounds of manure annually, contributing to air and water pollution. Researchers also note that anaerobic digesters do not eliminate manure but convert it into digestate, which is commonly used as fertiliser or animal bedding. Studies by the US Department of Agriculture have suggested that digested manure can, in some cases, be more polluting than untreated manure.
Community groups in several states have opposed large co-digester projects over concerns related to air pollution, water contamination, truck traffic and industrial waste disposal.
In Lind, Wisconsin, residents successfully opposed a proposed co-digester project in 2024 after raising concerns about environmental impacts, including plans to discharge around 41,000 gallons of processed waste daily into a tributary connected to Lake Michigan.
Despite such opposition, Vanguard Renewables continues to expand its operations and currently develops or operates more than 50 co-digesters across the United States. The company aims to increase that number to more than 100 by the end of 2028.
The American Biogas Council believes biogas could become an important energy source for the expanding data centre industry. Executive Director Patrick Serfass said biogas systems can provide reliable, high-capacity power and estimated that only 10% to 15% of the industry’s potential has been developed so far.
He said the growing electricity demand from data centres could absorb nearly all of the biogas the industry is capable of producing.
Biogas projects have received significant government support in recent years. Nearly 200 digesters across 16 states receive funding through California’s Low-Carbon Fuel Standard, while the Inflation Reduction Act approved more than $150 million for biogas projects in 2023. The Michigan Strategic Fund has also approved more than $100 million in private bonds for anaerobic digester projects.
