AI data centers plan their own gas power plants on a huge scale

Companies building data centers for AI plan to bring their own gas-fired power plants, and the scale is large. A report from BloombergNEF counts proposals for 181 gigawatts of on-site gas capacity across the US, the UK and mainland Europe. That is almost four times the peak electricity demand of Great Britain.

What changed

The reason is speed. Connecting a big new data center to the national power grid can take a long time. Developers say they cannot wait, so they plan to generate their own power on site.

The report says the US accounts for 90% of the planned on-site gas plants. If they all get built, it estimates they would emit about 345 million metric tonnes of carbon dioxide equivalent a year in the US. That matches the yearly emissions of about 72.8 million fossil fuel cars.

Why this is a bigger deal than it sounds

AI data centers use huge amounts of electricity to run servers, cool equipment and power the buildings. The report expects their demand to almost quadruple by 2035, to 2,354 terawatt-hours. That would be about 7% of global electricity demand.

Developers often say the gas plants are temporary, a bridge until the grid connection arrives. Mark Daly of BloombergNEF says that once the plants are running, the economics could encourage owners to keep using them. That creates a risk of being locked into fossil fuels for longer.

The UK example

In the UK, data center projects made more than 100 inquiries in 2024-5 to connect to gas, according to Future Energy Networks. Two sites, Wapseys Wood in Buckinghamshire and Quest Park in Bedfordshire, want their own gas plants because of the long wait for grid access. Both are among the first fast-tracked through a government regime for major infrastructure.

The government has also given the green light for data centers to build and run temporary on-site fossil fuel plants while they wait, as part of a so-called datacentre covenant. Oliver Hayes of Global Action Plan called that shocking and said nobody believes the plants will stay temporary.

What happens next

The 181 gigawatts are proposals, not finished plants. The report's emissions figure applies only if the rollout happens. Daly says the climate result will depend on how fast grids can connect data centers and whether cleaner generation is added alongside the demand. The report says grid connection is the more sustainable route.

The timing is notable. The report came out as world leaders met in Turkey for the UN climate summit, while several European leaders headed to Dublin for the EU's first dedicated AI summit on Friday. The material does not say how any of this would affect household energy bills.