AI's hunger for power sparks US private gas plant boom
US tech companies are increasingly building private, gas-fired power plants to power their rapidly expanding data centers for AI, leading to a boom in "behind-the-meter" generation with significant environmental implications. This trend could add over 200 million tons of carbon dioxide emissions annually. The NAACP has filed a lawsuit against xAI regarding its data center operations in Mississippi powering its Memphis facility, highlighting growing opposition to these energy practices.
US tech companies are rapidly developing private, gas-fired power plants to supply electricity to their AI data centers, a trend dubbed a "private gas plant boom." Research firm Cleanview identified approximately 60 such data centers planned for the coming years, set to produce a combined 97 gigawatts of "behind-the-meter" generation by the early 2030s, an amount equivalent to Mexico's total installed capacity. This development carries enormous climate implications, potentially leading to over 200 million tons of annual carbon dioxide emissions.
Specific examples include a 7.5 GW plant in Texas powering Amazon data centers, and xAI's Colossus 2 data center in south Memphis, Tennessee, which accounts for most of the two gigawatts currently online. Cleanview's analysis indicates that major hyperscalers like Meta, Microsoft, and Oracle are pursuing similar projects, while AI labs such as OpenAI and Anthropic have signed leases for more than 10 gigawatts of such power. These facilities often utilize more unconventional and polluting generators, including aircraft-designed turbines and refurbished industrial equipment.
Environmental groups express strong opposition, with John Rogers, associate director of energy analytics at the Union of Concerned Scientists, criticizing the practice for needlessly pumping hazardous pollutants into local communities. Yuqi Zhu, a senior policy analyst at Natural Resources Defense Council, labels these plants "unacceptable" given worsening climate change impacts. The NAACP, co-represented by Earthjustice, has filed a lawsuit against xAI, alleging unlawful turbine operation in Mississippi to power its Memphis facility, fearing a precedent-setting outcome that could embolden other data center developers. President Donald Trump's administration's "Ratepayer Protection Pledge" is also cited as a potential accelerant to this trend, which sees announced fossil fuel capacity rebounding significantly.