US Gas Boom Fueled by Data Center Demand
▼ Summary
– Data centers have caused US demand for gas-fired power to explode, with over a third of new demand explicitly linked to projects powering them.
– This surge in gas power infrastructure, if fully built, could increase the US gas fleet by nearly 50%, adding almost 252 gigawatts of capacity.
– The data center-driven demand for gas power has grown dramatically, from 4 gigawatts earmarked in early 2024 to over 97 gigawatts tracked for 2025.
– The expansion will almost certainly increase US greenhouse gas emissions, as gas plants release CO2, and is supported by policies rolling back pollution regulations.
– The scramble to power data centers is also extending the life of dirtier coal plants, as utilities race to meet the projected demand.
The surging demand for electricity from data centers is directly fueling a massive expansion of natural gas power generation across the United States. New research reveals that over the past two years, the need for gas-fired power has nearly tripled, with more than a third of this new demand explicitly tied to projects designed to power these energy-intensive facilities. This represents an amount of energy capable of powering tens of millions of American homes, marking a significant shift in the nation’s power landscape.
According to the findings, if all the gas-fired power infrastructure currently in development were to be built, it could expand the existing U.S. gas fleet by close to 50 percent. The country’s current grid supports roughly 565 gigawatts of gas-fired power. The projected additions would contribute nearly 252 additional gigawatts. To grasp the scale, a single gigawatt can power up to one million homes, depending on regional energy consumption patterns.
The acceleration is staggering. When tracking began in early 2024, approximately 85 gigawatts of gas power were in development, with just over 4 gigawatts specifically for data centers. The latest data shows that figure has skyrocketed, with over 97 gigawatts of demand now linked to data center projects, an increase of almost 25 times in just one year. This explosive growth underscores how the rapid build-out of computing infrastructure is reshaping energy priorities.
“The implications are huge when you’re talking about this size of a build-out,” notes one senior climate policy advisor. The construction boom coincides with federal policies that both encourage data center development and roll back pollution regulations for power plants and fossil fuel extraction. This combination all but guarantees an increase in U.S. greenhouse gas emissions, even if some proposed projects are never completed.
Analysts compiled the data by reviewing public sources, including state regulatory filings, air quality permits, and corporate announcements. The trend became unmistakable recently. “About a year and a half ago, we started to see this increase in proposals for data centers specifically,” explains a research analyst involved in the study.
Utilities and developers are in a race to secure power from all available sources to meet this unprecedented demand. This scramble is providing a lifeline for dirtier energy sources that were slated for phase-out. Several coal-fired power plants nationwide have received extensions on their retirement dates, supported by policies favorable to the coal industry.
While natural gas burns cleaner than coal, the sheer volume of new capacity carries a substantial emissions burden. Burning natural gas still releases carbon dioxide, and it was responsible for about 35 percent of U.S. energy-related CO2 emissions in a recent year. “Gas is cleaner when burnt than coal, but when you’re talking about this much gas, you’re talking about a lot of CO2 associated with it, too,” the climate advisor emphasizes. The data center boom is therefore locking in a fossil-fuel dependent energy pathway with major climate consequences for the foreseeable future.
(Source: Wired)
