The rapid expansion of artificial intelligence and data centers is creating enormous demand for electricity, pushing developers to build their own natural gas power plants when connecting to the electric grid can take years, Bloomberg reports.
These privately operated, “behind-the-meter” facilities can be permitted and built without approval from utilities or independent system operators, allowing data centers to secure reliable power more quickly. However, this shift toward natural gas could significantly increase carbon emissions.
Ninety-nine proposed plants tracked by BloombergNEF could produce about 318 million metric tons of carbon dioxide annually if operated at industry-standard rates, equivalent to roughly 20% of current U.S. power-sector emissions.
If they operated continuously, emissions could reach about one-third of current power sector emissions. Many of these projects are concentrated in Texas, where abundant oil and gas resources and a historically less restrictive regulatory environment have encouraged rapid data center development.
Major technology companies such as Amazon and Microsoft are involved in large projects that could generate substantial amounts of electricity while also producing millions of tons of carbon dioxide each year. This creates a conflict between the growing energy needs of AI and the climate commitments many technology companies have made.
Although some developers are considering alternatives such as solar power and battery storage, natural gas remains attractive because it can provide dependable electricity around the clock.
