AI-Fueled Gas Power Boom Fuels U.S. Datacenter Controversy

A Global Energy Monitor (GEM) analysis shows the United States now adds gas-fired capacity faster than China for the first time in decades. In the first half of the year, under-construction gas projects jumped 76 %, bringing total development to roughly 378 GW—about a third of global capacity. Roughly half of the new capacity is tied to AI-intensive datacenters that need continuous power. If all projects proceed, the U.S. gas fleet would expand by two-thirds at a capital cost exceeding $647 billion, potentially raising power-sector emissions by up to 20 % (GEM).

The GuardianU.S. gas power proposals tied to data centers nearly double in six months

The AI boom sparked by the 2022 release of ChatGPT has driven rapid datacenter construction. Companies such as Google, xAI, and Amazon are securing on-site gas turbines or reciprocating engines to avoid grid bottlenecks. The Trump administration has rolled back environmental reviews and eliminated public-notice requirements for “minor” pollution sources, a move critics say will obscure community exposure to nitrogen oxides, carbon monoxide and heavy metals.

The Guardian

• Gas capacity under development grew from 252 GW to 378 GW since January (? 50 % increase).

The Guardian

• Engine capacity linked to datacenters more than doubled, from 31 GW to 67 GW; datacenter-specific projects now total 45 GW, about 25 % of all gas-power proposals for datacenters.

U.S. gas power proposals tied to data centers nearly double in six months

• The International Energy Agency forecasts U.S. spending on coal and gas plants will exceed China’s for the first time in decades.

The Guardian

• A Heatmap poll finds three-quarters of Americans oppose living near a datacenter, up from 49 % in March.

The Guardian

• Water use by U.S. datacenters had already tripled by 2023; indirect consumption via electricity generation accounts for over 80 % of total datacenter water use.

The Register UK

State leaders such as New York’s governor have imposed temporary bans on new hyperscale datacenter permits, citing water scarcity and community opposition.

The Guardian

Environmental advocates warn that the EPA rule would strip an “ironclad promise” of public participation in air-quality decisions. Former EPA assistant administrator Joe Goffman calls the change a “regulatory subsidy” for states courting datacenter investment, reducing transparency. Legal scholars note developers fragment pollution permits to stay under “minor” thresholds, avoiding stricter federal review; attorneys such as Jessica O’Donnell argue this undermines enforceable emissions limits.

The GuardianThe Register UK

• Emission impact estimates vary: GEM cites a potential 20 % rise in power-sector emissions, while the EPA says standards remain unchanged.

The Guardian

• Water-use figures differ: the Library of Congress CRS report emphasizes indirect consumption via electricity generation, whereas industry statements focus on direct cooling water, which is only about 2 % of total U.S. water use.

The Register UK

• The share of gas turbines versus reciprocating engines in upcoming projects is uncertain; two-thirds of global proposals lack a named turbine manufacturer, leaving capacity forecasts ambiguous.

U.S. gas power proposals tied to data centers nearly double in six months

• “Six months ago, China had more gas plants under construction but that has now flipped,” — Jenny Martos, project manager, Global Energy Monitor

The Guardian

• “It’s very much a bottom up, organic movement,” — Anna Greenberg, veteran Democratic pollster

New York Times

The EPA’s proposed rule is slated for finalization later this year and could face legal challenges from environmental groups. Legislative activity continues at state and federal levels, though most water-related bills have not progressed beyond introduction.

The Register UK