by Jaryd O'Brasky

Global energy demand is accelerating—data center growth alone could drive a triple-digit surge in electricity use by 2030. In North America, that demand is driving urgency around scalable, low-carbon energy, and bringing dispatchable energy sources from natural gas and nuclear into focus. Hydrogen remains a key part of the conversation, particularly with its applications for long-term energy storage and H2-derivative clean fuels.

Quest One participated in two of North America’s largest hydrogen industry gatherings this spring: CERAWeek 2025 and World Hydrogen North America. Both events highlighted what’s shifting in the energy landscape—and where hydrogen fits. Here are our biggest takeaways—and how Quest One is helping advance clean hydrogen in today’s energy reality.

The start of 2025 brought a noticeable shift in the clean hydrogen space. After years of bold announcements, many large-scale projects—some in the hundreds of megawatts or even gigawatts—are being paused or shelved due to economic and infrastructure constraints.

Industry leaders in North America are now prioritizing practicality. That means focusing on hydrogen use cases with clear demand and existing infrastructure. H2-derivatives like renewable natural gas, ammonia, and methanol are gaining traction, along with hard-to-abate sectors such as refining and steel, where hydrogen can play a near-term role. This recalibration benefits companies positioned to deliver modular, right-sized solutions, especially in applications that don’t require entirely new value chains to be built from scratch.

While policy hurdles remain, Europe is making progress where it counts—project execution. Even if the reality of the hydrogen economy has fallen short of expectations, Europe has already taken important steps towards the industrial scaling. In the past six months, several large-scale hydrogen developments in Germany have moved forward, with final investment decisions signaling commercial viability.

The European Union’s Clean Industrial Deal is designed to cut red tape and simplify access to funding. However, industry players continue to call for more predictability and transparency in the regulatory process. Europe’s willingness to pay for clean hydrogen, particularly in industrial sectors, is helping to turn ambition into action.

In North America, the U.S. Gulf Coast continues to lead clean hydrogen development. The region has a high concentration of existing hydrogen production and end-use assets—including refining, ammonia production, petrochemicals, and marine fuel infrastructure—that support low-carbon hydrogen applications.

What’s new is a shift in strategy. Developers are focusing less on large-scale domestic demand and more on export opportunities to Europe and Asia, where policy frameworks like Contracts for Difference (CfD) are helping move projects forward. The Gulf Coast’s infrastructure, renewables access, and project pipeline position it as a launch point for near-term clean hydrogen growth.

One of the most talked-about drivers of energy demand in early 2025 is artificial intelligence. The rapid rise of AI tools and data centers is placing unprecedented pressure on the grid, particularly in the United States. According to Goldman Sachs Research, global power demand from data centers is expected to grow 50% by 2027 and up to 165% by 2030. AI data centers consume enormous amounts of electricity, often comparable to the energy use of small cities. These facilities require 24/7 power, making intermittent renewables difficult to rely on alone. Forbes recently reported that U.S. electricity providers—from Texas to Virginia—are scrambling to keep up with the pace and scale of new AI-related load requests. As a result, natural gas and nuclear are seeing renewed interest. For clean hydrogen in North America, this shift underscores the urgency of efficiency, flexibility, and scalability. Competing for green electrons will become more difficult as AI infrastructure expands. Clean hydrogen systems that can deliver dependable output with fewer variable inputs will have a clear advantage.

The investment risk profile of industrial-scale clean hydrogen projects is becoming front and center to enabling further FIDs. Projects that can’t demonstrate an execution plan with manageable risk levels and a clear return will struggle to attract capital. That’s why standardization and constructability are getting more attention. Developers, EPCs, and OEMs are working together to streamline deployment and reduce uncertainty. Modular, pre-engineered systems lower capital costs and improve timeline predictability. But technology alone won’t close the gap. Partnerships across the supply chain are essential to unlocking bankable projects. This is where Quest One is focused.