A shortage of grid capacity and lengthy utility interconnection delays are pushing major data center operators toward “behind-the-meter” power systems rather than waiting for public grid access, The Center Square has the full story.
Energy research firm Enverus projects that about 40% of new U.S. data center capacity additions through 2030 will be powered off-grid, requiring roughly $5 trillion in investment and adding 62 GW of natural gas-fired generation.
Major technology companies such as Amazon and Google are pursuing privately controlled natural gas generation to meet the massive short-term electricity demands of AI data centers. The growth is expected to be concentrated primarily in Texas, the PJM market region covering areas such as Pennsylvania and Ohio, and the Western U.S. Enverus estimates domestic off-grid natural gas demand from these facilities could reach 1.3 billion cubic feet per day by 2030.
Analysts say the shift is being driven largely by the need for speed, power availability and reliability rather than climate objectives. However, increased reliance on natural gas creates challenges for companies’ carbon-reduction commitments.
Texas and Louisiana may have an advantage in future carbon capture and storage efforts because of their geological characteristics. A 2024 Enverus study ranks the two states among the nation’s leaders in underground carbon storage potential due to available pore space and deep formations capable of storing carbon dioxide.
Enverus estimates Gulf Coast carbon storage could break even at costs as low as $8.70 per ton, while only about 1% of Appalachian formations could be developed at comparable costs under current subsidies.
The Center Square has the full story.
