Data center demand is driving a US fossil fuel building boom

A new report finds the US is planning more gas and other fossil fuel power than it has in a decade, as data centers push electricity demand up and renewable growth slows.

1 min read

The Verge

At a glance

of planned new power capacity is fossil fuel
30%
of fossil capacity planned by 2030
68 GW
per MWh for new solar and wind, vs $90 for gas
$68–69
What’s new
The report, from the Environmental Defense Fund and Atlas Public Policy, tracks a sharp swing toward gas plants in US power plans, with renewable projects now being cancelled faster than fossil ones.
Who it affects
Electricity customers, utilities, and AI companies whose data centers need reliable, affordable power.

Electricity demand is rising faster than in more than a decade as data centers, factories and electric vehicles connect to the grid. The Trump administration has tried to slow wind and solar through stop-work orders, blocked permits and removed tax incentives. Many gas plans could still fall through, especially if forecasts of AI data center demand prove too high.

Why it matters

AI’s energy appetite is now shaping national infrastructure. Gas plants built today run for decades, so the report’s authors warn of locked-in pollution and higher electricity prices, even though new wind and solar remain cheaper. Whether AI demand really materialises will decide how much of this gets built.

The fossil fuel comeback is here

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Summary by Second Order AI. Full reporting is at the original source.