Home 9 AI 9 U.S. Data Center Boom Fuels a Rapid Expansion of Gas Power

U.S. Data Center Boom Fuels a Rapid Expansion of Gas Power

by | Sep 1, 2026

AI energy demand is pushing developers toward private gas plants, raising concerns about emissions and long-term clean energy investment.
Source: Alex Milan Tracy/AP Images.

 

The rapid growth of artificial intelligence and data centers is driving a major expansion of natural gas power generation across the United States. Research from Global Energy Monitor shows that gas-fired power projects being developed specifically for data centers have nearly doubled in less than a year, tells Wired.com (full article available to subscribers).

At the end of 2025, about 97 gigawatts of gas projects were under development for data centers, up sharply from just 4 gigawatts in early 2024. By mid-2026, the pipeline had climbed to more than 189 gigawatts. One gigawatt can provide enough electricity for roughly a million homes.

A major reason for this expansion is the difficulty data center developers face when connecting large facilities to existing power grids. Grid interconnection can take years, prompting companies to develop private, behind-the-meter power plants that supply electricity directly to data centers. The Trump administration has encouraged technology companies to provide their own power, and several major AI and technology companies have joined a voluntary initiative supporting this approach.

The shift could have significant environmental consequences. Many proposed facilities rely on less-efficient gas turbines, potentially increasing greenhouse gas emissions. Some private gas plants are permitted to produce more annual emissions than some small and medium-sized countries.

The trend also highlights a growing difference between United States and Chinese data center strategies. While the United States is increasingly turning to natural gas, China is locating many new data centers in areas with abundant solar and hydropower resources. Its renewable energy expansion also supports the country’s broader goal of energy independence.

Not every proposed U.S. gas project will ultimately be constructed. Financing challenges, local opposition, equipment shortages, moratoriums, and uncertain data center demand could delay or cancel projects. Still, researchers warn that widespread construction of these plants could lock the United States into substantial fossil fuel emissions for decades.