AI's hunger for power sparks US private gas plant boom
As US tech companies race to build the data centers fueling the AI boom, they are increasingly putting up their own power plants -- off the grid and running on gas -- to get online faster. After years of decline, new announced fossil fuel capacity for the grid hit a low in 2022, rebounding the following year as the AI boom took hold.
The AI industry's insatiable demand for power is fueling a boom in private gas plants across the United States, according to a report by Cleanview, a research firm. These off-grid power plants, running on gas rather than renewable sources, are being built to provide data centers with the energy they need to operate rapidly. An estimated 60 data centers with a combined 97 gigawatts of behind-the-meter generation capacity are planned for construction over the next decade, equaling the total installed capacity of Mexico.
The climate implications of this surge in gas-powered data centers are significant. Even with conservative estimates, these plants could emit over 200 million tons of carbon dioxide annually, equivalent to the emissions of more than 46 million gasoline-powered cars. In addition to CO2, gas plants release fine particulate matter, nitrogen oxides, and hazardous air pollutants, contributing to respiratory diseases and other health issues.
John Rogers, associate director of energy analytics at the Union of Concerned Scientists, warns that these dirty plants are unacceptable, especially as extreme weather events highlight the need for urgent climate action.
The gas plant trend began with Elon Musk's mobile gas turbine installation at an xAI data center in Memphis, but has since expanded to include major tech companies like Amazon, Meta, Microsoft, Oracle, OpenAI, and Anthropic. These companies have turned to unconventional power sources, including trailer-mounted generators, aircraft and warship turbines, piston engines, and refurbished industrial turbines.
The majority of this development is occurring in Republican-leaning states, with Texas leading the way at over 40 gigawatts announced.
The practice has drawn criticism from civil rights groups and environmental organizations, with the NAACP filing a lawsuit against xAI for operating turbines in Mississippi without proper permits. The Trump administration's voluntary Ratepayer Protection Pledge, which aims to prevent data center costs from being passed on to residential consumers, is viewed with concern by these groups.
Recent data shows that fossil fuel capacity for the grid has rebounded, with announced new fossil fuel capacity in the first half of 2026 already surpassing levels seen in the past decade.
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