The AI Power Crunch: Data Centers Turn to Natural Gas, Sparking Climate Concerns
February 10, 2026
The explosive growth of artificial intelligence is triggering an unprecedented demand for computing power, forcing data center developers into a frantic search for reliable electricity. With grid connections facing years-long delays and renewable sources often unable to provide constant "baseload" power, the industry is increasingly turning to an old, carbon-intensive standby: natural gas. This pivot, marked by innovative but polluting on-site generation projects, threatens to lock in decades of fossil fuel emissions and undermine global climate goals.
A landmark deal exemplifies this trend. Boom Supersonic, a company founded to build supersonic airliners, has repurposed its jet-engine technology for the energy sector. It signed a $1.25 billion agreement to supply 29 jet-engine gas turbines to developer Crusoe, which is building data centers for AI pioneer OpenAI. This is not an isolated case. From Meta's facility in El Paso, Texas, powered by over 800 mobile mini-turbines, to Caterpillar-supplied engines in West Virginia, developers are securing gas power directly. Crusoe's massive "Stargate" campus in Abilene, Texas, alone requires a staggering 1.2 gigawatts.
The scale of this build-out is global. According to energy analysis firm Global Energy Monitor, over 1,000 gigawatts of new gas-fired power capacity is now in development worldwide—a 31 percent surge in just one year. The United States leads this charge, accounting for a quarter of the pipeline, with more than a third of the new U.S. capacity dedicated solely to data centers. This rush carries a heavy climate cost. Analysis from Cornell University researchers warns the data center gas build-out could add up to 44 million metric tons of carbon dioxide annually by 2030, equivalent to the emissions of 10 million passenger cars. “This is a huge proposed build-out,” said Cara Fogler of the Sierra Club. “Existing coal that’s not coming offline and planned gas that’s trying to come online are potentially boxing out clean energy.”
Faced with power shortages, companies are bypassing utilities altogether. At least 46 data centers in the U.S., with a combined capacity of 56 gigawatts—comparable to 27 Hoover Dams—are using "behind-the-meter" on-site generation. K.R. Sridhar, an executive at Bloom Energy, which makes fuel cells for data centers, noted the shift: “On-site power has moved from being a decision of last resort to a vital business necessity.” The company's order backlog has more than doubled in a year, with growth strongest in states like Texas that have robust gas infrastructure and favorable regulations.
Texas is the epicenter of this activity, with nearly 58 gigawatts of natural gas power in development—more than any country except China. Nearly half of the plants under construction will power data centers exclusively, disconnected from the main grid. Developers are opting for smaller, more flexible gas generators over traditional turbines. Jeff Ferguson, president of Titus Low Carbon Ventures, which is building multiple data center parks in Texas, explained the choice: “We think that reciprocating engines are a better solution for data centers... the difference is in the ability to manage transient loads.” These engines can start in a minute versus an hour for a traditional plant.
However, experts warn these alternatives are often less efficient and more polluting. “Internal combustion [engines] have better ramp up/down time[s] but are less efficient when compared to a gas turbine,” said Jenny Martos, a researcher at Global Energy Monitor. “All gas power technologies produce emissions, but generally engines produce more emissions than the others.”
The trend is also reaching rural areas with few economic alternatives. In southern New Mexico, the proposed $165 billion "Project Jupiter" data center campus would be powered by gas microgrids generating 2,880 megawatts—more than the capacity of central New Mexico's main utility. Colin Cox, an attorney with the Center for Biological Diversity opposing the project, stated, “I’ve never seen something quite this big before, dollar-wise, scale-wise. To call this a microgrid defies common sense.” The behind-the-meter setup allows the project to avoid state regulatory scrutiny, even though its emissions could negate New Mexico's recent climate gains. Cox warns of the risk of stranded assets if AI demand falters: “You can’t do anything with a gas turbine besides run gas through it to make it spin.”
Source: grist
