Data Centers Could Soon Run on Supercritical CO2

The Promise of Supercritical CO2

As data centers continue to expand at an unprecedented rate, their energy demands are creating a critical need for innovation in power generation. Enter American Supercritical, a startup emerging from stealth with a bold vision: retrofitting existing gas turbines with supercritical carbon dioxide (CO₂) technology to improve efficiency without adding new emissions.

Their approach is not revolutionary in concept—combining heat recovery with improved thermal cycles—but it's being applied to a sector that has long been overlooked for optimization. The startup, backed by $8 million in funding, plans to initially target small gas turbines used by data centers across the U.S., which often operate at only 35% efficiency compared to combined-cycle plants that can reach 60–65%.

"We want to start with gas turbines but eventually expand beyond that," said cofounder Simon Shuham. "We're essentially building miniature combined-cycle plants."

A Cleaner Path Forward?

Supercritical CO₂ has been studied for over half a century, but it's only now beginning to move from theoretical research into commercial applications thanks to technological advances in heat exchangers and pressurization systems. This state of CO₂ behaves like both a liquid and gas—offering high thermal conductivity with minimal volume requirements.

By using this medium to transfer heat directly from exhaust gases, the startup's units can extract additional power from what would otherwise be wasted energy. In theory, this could increase turbine efficiency by up to 50% while reducing water usage—a significant advantage in regions where water scarcity is a concern.

• Improves efficiency of existing gas turbines
• Reduces water consumption
• Operates within a closed-loop system
• Can be retrofitted onto current infrastructure

The Reality Check

Despite the technological promise, this approach isn't a silver bullet. As with any energy solution, emissions aren't entirely eliminated when natural gas is still being used. Data centers are growing rapidly, and even more efficient gas-powered systems will continue to emit greenhouse gases. The environmental benefit remains limited unless coupled with renewable alternatives or carbon capture technologies.

Moreover, scaling this technology across the U.S. will face significant challenges related to supply chains, manufacturing costs, and industry adoption. Established power plant makers have little incentive to invest in disruptive innovations that may threaten their market position, as noted by Doug Hofer, a former GE turbine engineer and adviser to American Supercritical.

"It's the innovator's dilemma, right? Getting this [technology] out there needs to have an outside influence," said Hofer.

Global Potential

While American Supercritical is focused on U.S. data centers today, its technology has broader implications. The company sees potential in adapting their systems for geothermal, solar, and nuclear energy sources—including small modular reactors (SMRs), a field that has attracted strong political support in recent years.

Earlier this year, China commissioned the world's first geothermal plant using supercritical CO₂, highlighting global interest in the technology. This precedent suggests that American Supercritical's efforts may resonate internationally as countries seek cleaner, more efficient ways to generate electricity.

The Bottom Line

This innovation is an important step forward in the push for efficiency improvements within data center infrastructure—but it's not a complete solution to the climate crisis. The real value lies in bridging the gap between today's inefficient systems and tomorrow's cleaner alternatives. For now, American Supercritical offers a pragmatic upgrade path that reduces waste while maintaining current energy sources. Whether this will be enough remains to be seen, especially as global demand for computing power continues to soar.