Key facts
- The expansion of data centers for AI is driving a surge in U.S. natural gas power plant development.
- Planned gas-fired power capacity linked to data centers nearly doubled in the first half of 2026.
- Major tech companies like Amazon, Nvidia, and Microsoft are involved in new gas-powered data center projects.
- Data centers permitted through 2025 could increase annual electricity consumption by 50%.
- Public opposition to data centers is growing, with 75% of U.S. voters opposing new developments in their areas.
The burgeoning artificial intelligence sector is driving a significant increase in demand for electricity, leading to a revival in natural gas power plant development across the United States. Major technology companies are investing heavily in massive data center campuses to support AI infrastructure, necessitating the construction of new, large-scale power sources.
Amazon is constructing a gas-fired power plant in Texas that could become the largest source of power-related emissions in the U.S. if current plans are realized. Nvidia, in collaboration with SoftBank and the federal government, is set to build the nation's largest fossil-fuel plant to power an OpenAI project in Ohio. Microsoft is also reportedly in discussions with Chevron for a substantial gas-powered data center in Texas.
According to Global Energy Monitor, planned U.S. gas-fired power capacity tied to data centers nearly doubled in the first half of 2026. The U.S. now accounts for approximately one-third of all planned gas-fired capacity globally, with Texas leading in new proposals. However, reports indicate that the construction of these plants faces potential bottlenecks due to a shortage of gas turbines, with lead times potentially extending for years.
Furthermore, growing political pressure and public backlash against the energy demands and environmental impact of data centers could lead to a slowdown in development. A significant portion of the energy costs associated with these facilities is being passed on to consumers, contributing to an energy affordability crisis. A recent poll found that 75 percent of U.S. voters oppose the development of new data centers in their areas. Texas, a hub for this growth, has recently paused new data center projects. The Trump administration has suggested requiring AI firms to provide their own energy, but this approach may not fully alleviate consumer burdens or align with decarbonization goals, as major tech companies have already seen emissions rise due to AI-driven data center expansion.