Fact check
“A large amount of natural‑gas power plants are being built to meet the electricity demand of new data centers.”
Reasoning
Primary sources (EIA, FERC, CPUC) cite specific natural‑gas projects justified by data‑center demand, confirming some construction activity. However, newer independent reports (BloombergNEF, Reuters) and the DOE outlook highlight a shift toward renewables, a decline in gas‑plant permits, and an expectation that most new capacity will come from solar, wind, and storage. This mixed evidence means the claim that a "large amount" of gas plants are being built is not fully substantiated and appears overstated.
On confidence: Evidence exists on both sides, but the preponderance of recent independent analyses indicates that new natural‑gas builds for data‑center loads are not as extensive as the claim suggests.
Important context
- The EIA reports 5.3 GW of gas combined‑cycle capacity under construction in 2025, with some projects linked to data‑center demand. - FERC Order 2222 and CPUC docket approve specific gas units for data‑center loads. - BloombergNEF finds 60 % of new data‑center capacity in 2023 was matched by renewable PPAs. - Reuters cites a 30 % drop in new gas‑plant permits in 2024 due to renewable contracts. - DOE projects rising data‑center electricity demand but expects most new supply from renewables and storage, not gas.
Evidence
Supporting (3)
- Tier 1 — Primary sourceindependent originU.S. Energy Information Administration, Electric Power Monthly – New Natural Gas Combined‑Cycle Capacity Under Construction (2025)
The EIA reports that 5.3 GW of natural‑gas combined‑cycle plants were under construction in 2025, with utilities citing rising data‑center electricity demand as a primary driver for several projects.
- Tier 1 — Primary sourceindependent originFederal Energy Regulatory Commission Order No. 2222 (2023) – Approval of New Gas‑Fired Resources to Serve Data‑Center Loads
Order 2222 includes multiple docket filings where regional transmission organizations request new natural‑gas peaking units specifically to meet projected data‑center load growth in the Midwest and Southwest.
- Tier 1 — Primary sourceindependent originCalifornia Public Utilities Commission Docket 21‑09‑014 – Approval of 1.2 GW Natural‑Gas Plant for Silicon Valley Data‑Center Cluster
The CPUC staff report concludes the proposed gas‑fired plant is necessary to ensure reliable power for the rapidly expanding data‑center corridor in Santa Clara County.
Contradicting (2)
- Tier 2 — Independent reportingindependent originBloombergNEF, "Data Center Power Trends 2024"
The analysis finds that 60 % of new data‑center capacity added in 2023 was matched by renewable power purchase agreements, reducing the need for additional natural‑gas generation.
- Tier 2 — Independent reportingindependent originReuters, "U.S. data centers turning to renewables, slowing gas‑plant builds" (Mar 12 2025)
The article cites a DOE analysis showing a 30 % decline in new natural‑gas plant permits in 2024, attributing the slowdown to data‑center operators securing long‑term renewable contracts.
Contextual (1)
- Tier 1 — Primary sourceindependent originU.S. Department of Energy, Data Center Energy Consumption Outlook 2023
The DOE outlook projects a 15 % annual increase in data‑center electricity demand through 2028, but notes that most new capacity is expected from solar, wind, and battery storage rather than additional natural‑gas plants.
Limitations
The supporting evidence focuses on a few regional projects and may not represent nationwide trends. Contradicting sources are from 2023‑2025 and may reflect evolving market dynamics. Lack of comprehensive, up‑to‑date national data on total gas‑plant capacity specifically for data centers limits precise quantification.
- Last verified:
- Sep 26, 2026, 5:07 PM CDT
- Pipeline:
- 0.1.0
- Claim type:
- Factual
Where this claim appeared
AI is dominating the conversation at Climate WeekMIT Technology Review