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Data center demand drives 66% surge in natural gas power plant costs

Natural gas power plant construction costs have surged 66% in two years while project timelines have extended by 23% due to overwhelming demand from data centers. The rapid expansion of AI and cloud computing infrastructure is creating unprecedented strain on energy infrastructure. This highlights the growing tension between digital transformation goals and energy sustainability.

Background

The AI boom and expansion of cloud computing services have dramatically increased electricity demand from data centers worldwide. Energy providers are struggling to keep pace with this rapid growth while maintaining reliable power supply.

Source
TechCrunch
Published
Apr 27, 2026 at 11:27 PM
Score
7.0 / 10