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Data Center Boom Drives Surge in US Gas-Fired Power Demand

Data Centers Natural Gas Renewable Energy Climate Change Energy Demand US Power Grid Methane Emissions
January 29, 2026
Source: Wired AI
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Article Summary

New research from Global Energy Monitor has uncovered a significant escalation in the demand for gas-fired power in the United States, largely fueled by the burgeoning data center industry. Over the past two years, the demand for gas-fired power has tripled, with over 97 gigawatts of new demand linked to data center projects – a substantial increase from the 85 gigawatts tracked in 2024. This surge is occurring amidst continued encouragement of data center build-out from the Trump administration, coupled with weakened environmental regulations, leading to a potential increase in US greenhouse gas emissions and methane leakage. Developers are increasingly turning to on-site gas turbines to avoid grid connection delays, further amplifying the demand. While natural gas is cleaner than coal, the scale of the new demand – potentially adding nearly 30 gigawatts to the grid – raises serious concerns about the overall carbon footprint. The report highlights a complex interplay between technological advancement (data centers) and policy decisions, creating a challenging environment for climate mitigation efforts. Furthermore, the reliance on gas turbines, many of which lack confirmed manufacturers, introduces additional supply chain vulnerabilities. The analysis underscores the urgency for a more sustainable approach to data center development and energy infrastructure.

Key Points

  • The demand for gas-fired power in the US has tripled over the past two years, largely due to the growth of data centers.
  • Over 97 gigawatts of new power demand is explicitly linked to data centers, significantly exceeding previous levels.
  • This surge is occurring alongside relaxed environmental regulations and a push for data center expansion, potentially increasing US greenhouse gas emissions and methane leaks.

Why It Matters

This news is crucial for policymakers, investors, and environmental advocates. The accelerating growth of data centers, traditionally seen as a driver of economic progress, is now recognized as a significant contributor to greenhouse gas emissions. The report’s findings highlight the need for a fundamental reassessment of data center energy strategies – moving beyond simply increasing power supply to prioritizing energy efficiency, renewable sources, and stringent methane emission controls. The confluence of technological and policy shifts creates a complex and urgent challenge, demanding a proactive and integrated approach to sustainable development.

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