US Surpasses China in Gas-Fired Power Plant Construction Driven by AI Data Centers

A new report from Global Energy Monitor (GEM) indicates that the United States has surpassed China in new gas-fired power plant construction, with a 76% increase in projects during the first half of the year. This surge, predominantly fueled by the rapid expansion of AI data centers, could lead to a two-thirds expansion of the US gas fleet at a cost exceeding $647 billion, potentially increasing national power emissions by up to 20%.

Project manager Jenny Martos of GEM warned that this reliance on gas not only locks in decades of pollution but also creates dependence on volatile fuel costs, which will ultimately impact ratepayers. The report highlights a 50% increase in total gas power capacity under development in the U.S. since January.

Despite the environmental and cost concerns, former President Donald Trump has defended the data center boom, arguing that such infrastructure brings jobs, investment, and tax revenue, and that communities rejecting them are "making a mistake." He noted that many data centers are building their own power plants. However, Trump also acknowledged growing public opposition to these projects and the need for better public relations.

The White House has responded by expanding its voluntary Ratepayer Protection Pledge for AI data centers, aiming to prevent increases in residential electricity bills. Signatories to this pledge include major tech companies like Alphabet, Microsoft, Meta Platforms, Oracle, OpenAI, xAI, and Amazon. Concurrently, the National Republican Senatorial Committee (NRSC) has privately expressed concerns to top AI firms about potential political fallout from negative public opinion, fearing that a significant backlash could impact politicians like Sen. Jon Husted (R-Ohio) and discourage future data center endorsements nationwide.