The cost of building new U.S. gas-fired power plants increased 66 percent from 2023 to 2025, underscoring the pressure on the power sector as data centers increase electricity demand.
The time required to bring natural gas power online also increased 23 percent during the two-year span, according to utility filings analyzed by research firm BloombergNEF, suggesting that supply chain bottlenecks are hindering the industry.
“Over the same period, planned gas capacity grew almost six fold,” the firm said in a research note Thursday.
The findings show how the data center boom is shaping the electricity mix and putting upward pressure on costs, a factor that could raise bills for consumers. Gas is the dominant fuel for energy projects tied to artificial intelligence. At the same time, there is a shortage of gas turbines, which make up roughly 20 to 30 percent of the overall cost of a gas plant.
