AI’s gas-plant boom, and the fight to stop it
AI’s gas-plant boom, and the fight to stop it
https://thenextweb.com/news/ai-data-centres-gas-plants-clean-energy-fight
Publish Date: 2026-07-12 11:21:32
Source Domain: thenextweb.com
The AI-Driven Surge in Natural Gas Power Plants
The rapid expansion of artificial intelligence (AI) has precipitated an unprecedented boom in natural gas-fired power plants, as fossil-fuel industries remain unable to spur such growth themselves, reveals The Associated Press.
Efforts to extend the life of aging coal plants are accelerating with this surge, as the high electricity demands of data centers—which rival mid-size city consumption—outstrips the faster pace at which wind and solar can be deployed. In response, several states have introduced stringent regulations to ensure that data centers reach renewable energy targets. For instance, New York is considering a bill that would mandate renewables to constitute at least 90% of large data centers’ energy by 2040. Even with these regulations, achieving such clean-energy goals appears increasingly challenging due to AI’s demand for power. This is reflected in rising electricity bills in utility territories and the economic impacts on Rust Belt factories. To circumvent this gridlock, companies and regulators are collaborating on specialized clean-energy projects directly tied to grid connections. Regulators are fast-tracking such connections, and the outcome of these regulatory decisions will shape future energy policy for decades. Thus, the control over grid interconnections has become critical, as the regulatory battle is shifting the focus to the technical aspects of energy delivery rather than legislative measures.
Key Points:
- AI’s demand has triggered the largest-ever boom in natural gas power plants, surpassing the capacity of fossil fuel industries to promote such growth.
- Aging coal plants are being extended beyond their retirement dates due to increased energy demands from AI data centers.
- States, including New York, California, and others, are enacting stringent regulations aiming for higher renewable energy targets for data centers.
- The crux of the issue lies in securing grid access, as regulations and private deals are being negotiated directly around it.
- The decisions now being made in regulatory bodies will dominate energy policy for multiple decades, making the focus on grid interconnections pivotal for energy future.
