Key facts
- The Tennessee Valley Authority (TVA) released a preliminary 2026 integrated resource plan.
- The plan indicates a need for 7 GW to 26 GW of natural gas capacity by 2040.
- The expansion is driven by electricity demand from data centers supporting AI and hyperscale computing.
- The plan also includes additions of nuclear, storage, and renewables.
The Tennessee Valley Authority (TVA) is preparing to significantly expand its natural gas capacity, according to its preliminary 2026 integrated resource plan. The plan indicates a projected need for between 7 GW and 26 GW of natural gas capacity by the year 2040. This substantial increase in natural gas infrastructure is largely attributed to the accelerating electricity demand generated by data centers that support artificial intelligence (AI) and hyperscale computing operations. The TVA's forward-looking strategy acknowledges the growing energy requirements of these advanced technological sectors. In addition to natural gas, the preliminary plan also incorporates the addition of other energy sources to its portfolio. These include investments in nuclear power, energy storage solutions, and renewable energy technologies. This diversified approach aims to balance the increasing demand with the need for reliable and potentially cleaner energy sources, reflecting a complex energy landscape shaped by technological advancements and evolving power needs.