A Close Look Behind the Boom in Gas-Fired Power Projects Powering America's Data Centres

The rapid expansion of data centres across the United States is fuelling an unprecedented surge in demand for gas-fired power, according to new research released this week. The findings highlight how the energy-hungry infrastructure underpinning cloud computing and artificial intelligence is reshaping America's electricity system — with significant implications for emissions and energy policy.

Research by Global Energy Monitor, a San Francisco–based nonprofit that tracks fossil fuel developments, shows that data centres have been a key driver behind a near-tripling of gas-fired power demand in the US over the past two years. More than a third of all newly proposed gas capacity is now explicitly linked to projects designed to power data centres.

A Pipeline of Power on an Unprecedented Scale

Global Energy Monitor's analysis reveals the sheer scale of the build-out under consideration. The US currently operates roughly 565 gigawatts of gas-fired power capacity.

If every project currently in the development pipeline were built, almost 252 additional gigawatts would be added — an expansion approaching 50 per cent of the existing gas fleet.

While not all proposals will reach completion, the figures illustrate the magnitude of industry expectations. Estimates suggest that one gigawatt of power can supply up to a million homes, meaning the planned capacity tied to data centres alone would be enough to power tens of millions of households.

Data Centres as the Main Driver

The shift has been rapid. When Global Energy Monitor last updated its tracker in early 2024, it recorded about 85 gigawatts of gas-fired power in development nationwide, with just over four gigawatts earmarked for data centres.

By 2025, that figure had surged to more than 97 gigawatts linked directly to data centre projects; almost 25 times higher than the previous year.

'About a year and a half ago, we started to see this increase in proposals for data centres specifically,' said Jenny Martos, a research analyst at Global Energy Monitor who worked on the report. The findings are based on reviews of public records, including regulatory filings, air-quality permits and company announcements, which were cross-checked against industry data.

Climate Concerns and Policy Context

The boom comes at a politically sensitive moment. The Trump administration has actively encouraged data centre development while simultaneously rolling back pollution regulations affecting power plants and oil and gas extraction.

Climate experts warn that the combination could drive a rise in US greenhouse gas emissions.

'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,' Jonathan Banks, a senior climate adviser at the Clean Air Task Force told WIRED, which was not involved in the research.

In 2022, around 35 per cent of US energy-related carbon dioxide emissions came from burning natural gas. While gas plants emit less CO2 than coal, their climate impact is compounded by methane leaks during extraction and transport.

Methane is roughly 80 times more potent than carbon dioxide over a 20-year period, and oil and gas production is estimated to account for about a third of global methane emissions.

On-Site Power and Grid Pressures

The research also highlights a growing trend towards on-site gas turbines at data centres. Faced with long delays connecting to overstretched electricity grids, developers are increasingly opting to generate power themselves. These installations sit alongside grid-connected gas plants built to meet rising regional demand.

Utilities, meanwhile, are racing to keep up. In some cases, coal-fired power stations have been granted life-extensions, buoyed by policies favourable to fossil fuels, further complicating efforts to cut emissions.

What Will Actually Get Built?

Despite the eye-catching numbers, Global Energy Monitor cautions that not all proposed projects will materialise. Developers often seek power from multiple sources, inflating apparent demand, while efficiency gains in data centres and AI training could curb future energy use.

A global shortage of gas turbines also threatens delays, with two-thirds of tracked projects still lacking confirmed manufacturers. Even so, the projects already under construction would add nearly 30 gigawatts of gas-fired power to the US grid, with a further 159 gigawatts in pre-construction stages.