Data centre expansion drives US natural gas capacity surge

The rapid expansion of data centres to support the artificial intelligence sector is triggering a significant revival in natural gas infrastructure across the United States. Planned gas-fired power capacity linked to data centres nearly doubled during the first half of 2026, as major technology companies seek substantial new power sources to meet the energy demands of hyperscale facilities. This shift marks a notable increase in fossil fuel development within the American energy landscape, driven by the insatiable power requirements of the AI boom.

Several high-profile projects illustrate the scale of this buildout. Amazon is constructing a gas-fired power plant in Texas that, if developed according to current plans involving seven gas plants, is expected to become the largest source of power-related emissions in the country. In a separate development, Nvidia announced a partnership with Japan’s SoftBank and the federal government to construct the United States’ largest fossil-fuel plant. This facility is intended to power an Ohio project for OpenAI, the developer of ChatGPT. Additionally, Microsoft is reportedly in discussions with Chevron regarding a seven billion dollar gas-powered data centre in Texas.

The energy consumption associated with these facilities is substantial. A June report from Business Insider indicated that if all data centres permitted through 2025 become operational, they will consume between 224.3 and 358.8 terawatt-hours of electricity annually. This represents a fifty percent increase over the previous year across that range. For context, this volume of energy is approximately equivalent to the annual consumption of Mexico, a nation with a population exceeding 130 million people.

According to Global Energy Monitor, the United States had 378 gigawatts of gas-fired power capacity in development as of the first six months of 2026. This figure represents a fifty percent increase in just six months, with 189 gigawatts tied directly to data centres. The US now accounts for roughly one-third of all planned gas-fired capacity worldwide, with Texas adding new proposals at a faster rate than any other region.

However, the realization of these projects faces significant hurdles. A recent report from Semafor noted that it remains unclear whether all planned plants will be built, as most are in early development stages. The surge in demand has created a bottleneck for gas turbines, with some suppliers warning of lead times spanning several years. Furthermore, political pressures and social backlash could lead to a cooling period in data centre development, which would subsequently cause planned gas-powered energy additions to taper off.

Public opposition to data centres is growing, with mistrust emerging as a bipartisan issue. The financial burden of meeting the energy demands of these facilities is increasingly falling on consumers, regardless of whether they benefit from AI services. David Lapp, Maryland People’s Counsel, stated that a massive transfer of wealth is occurring from residential utility customers to large corporations, including data centres and their corporate parents. He argued that utility regulation is failing to protect residential customers, contributing to an energy affordability crisis.

A recent Heatmap poll found that 75 percent of US voters oppose the development of new data centres in their area. Texas, identified by Global Energy Monitor as the centre of the global gas boom, is no exception to this trend. Semafor reported that the state has recently reversed its welcoming stance towards data centres, going so far as to pause new projects altogether.

In response to public discontent, the Trump administration has attempted to address the issue by requiring AI firms to supply their own energy for new projects. However, this approach has significant downsides. It may not alleviate the financial burden on consumers while simultaneously pushing gas power to new heights, thereby jeopardising the decarbonisation commitments of major technology firms. Google, Microsoft, and Amazon have all seen their emissions rise by double-digit figures year-over-year, with AI-driven data centre growth cited as the primary driver.