Anthropic says it will be burning lots of natural gas to feed the AI boom

Anthropic, a leading AI company, is increasingly turning to natural gas to power its rapidly expanding data centers, according to documents filed with the US Securities and Exchange Commission. This shift is driven by the growing demand for grid connections from data centers, which is outpacing the development of necessary grid infrastructure.

Many developers, including Anthropic, are equipping their sites with natural gas-burning turbine generators to meet the massive power needs of AI data centers. While this approach helps avoid delays in building the required grid infrastructure and avoids anger from consumers over rising electricity prices, it makes the company vulnerable to fluctuations in fossil fuel prices, exacerbated by conflict in the Middle East.

Anthropic acknowledges that climate change could lead to increased operating costs, creating a challenging situation for the company. To stay competitive, Anthropic must continue expanding its data center capacity, which can only be achieved by relying on fossil fuels. However, this same tactic is being adopted by other hyperscalers and AI companies, potentially driving up the price of natural gas.

The Trump administration has made it easier for new fossil fuel projects to be approved, while also bringing back online shuttered fossil fuel sites to address the backlog of new grid connections. Nonetheless, the high costs associated with data center construction and operation are causing growing dissatisfaction among Americans, with two-thirds opposing the construction of new facilities.

This issue has become a key concern in the upcoming 2026 midterm elections, with candidates aligned with Trump's AI-first rhetoric facing a challenging political landscape.