The growing energy demands of data centers are fueling a global increase in the construction of gas power plants, with the United States leading this trend. According to a recent report by the nonprofit Global Energy Monitor (GEM), gas-fired power generation in development globally rose by 31 percent in 2025, with nearly a quarter of the added capacity allocated to the US. A significant portion of this growth is expected to directly support data centers, particularly those used for generative AI applications.
The rapid expansion of data centers, driven by the need for more powerful hardware to support AI technologies, has raised concerns about the environmental impact of increased gas consumption. There are concerns that the construction of additional gas plants to meet the energy demands of AI could impede the transition to cleaner energy sources and potentially lead to stranded assets if the projected electricity demand from AI fails to materialize.
Despite the environmental implications, the surge in gas power plant projects is on track to set new records in 2026, surpassing the previous peak in 2002. The shift towards gas as a primary power source over coal is attributed to its cost-effectiveness and relatively lower carbon emissions. However, it is essential to acknowledge that gas production releases methane, a potent greenhouse gas that contributes to climate change.
Source: The Verge