AI data centres drive a resurgence in US gas power plants

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In the heart of Texas, where vast plains meet an endless sky, a new kind of boom is quietly unfolding. Unlike the oil rushes of the past, this surge is marked by the rise of sleek, efficient natural gas power plants.

Once thought to be in decline, natural gas is making a surprise comeback, driven by an insatiable demand for power in the digital age. This resurgence is reshaping the nation’s energy future, challenging long-held assumptions about the transition to a greener grid, and it’s all because of AI.

Across the US, an unexpected surge in the construction of natural gas-fired power stations is underway, driven by the growing energy demands of AI data centres. Despite earlier predictions of a decline in gas usage in favour of renewables, this has yet to materialise.

While natural gas has helped reduce reliance on coal, its continued dominance raises environmental concerns, particularly regarding methane leaks and long-term emissions. The first half of 2024 saw more new gas power capacity announced than the entirety of 2020, with projections suggesting this could be the highest year for new capacity since at least 2017.

This shift is prompting some utilities to reassess their decarbonisation targets, potentially complicating efforts to achieve a zero-emission electricity sector by 2035.

So, who is to blame here? Not long ago, we might have blamed the bitcoin miners. Now, our focus shifts to AI data centres. But in reality, the problem lies with our overall insatiable appetite for energy, which continues to grow with each passing year.

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