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Behind-the-meter data center gas plants will raise US energy bills
发布:2026-06-08
· 事件:2026-06-08
An article from Opinion Behind-the-meter data center gas plants will raise US energy bills Counterintuitively, it is data centers’ independence from the grid and use of natural gas that will hike ener...
An article from
Opinion
Behind-the-meter data center gas plants will raise US energy bills
Counterintuitively, it is data centers’ independence from the grid and use of natural gas that will hike energy costs for homes and businesses, write experts from Energy Innovation.
Published June 8, 2026
By
Jeffrey Rissman and Eric Gimon
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An aerial view of data centers in Stutsman County, N.D. Data centers building off-grid natural gas power plants will drive up gas and electricity rates, but clean energy is the antidote, write two experts from Energy Innovation.
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Jeffrey Rissman is a senior director at at Energy Innovation, where he works on technologies and policies to eliminate industrial greenhouse gas emissions. Eric Gimon is a senior fellow and consults as a technical expert, research scholar and policy adviser with Energy Innovation.
A colossal data center is rising amidst the farmlands of Richland Parish, Louisiana. It will guzzle
2.2 GW of power
, about twice as much as the entire city of New Orleans on a peak summer day.
Near Cheyenne, Wyoming, an even larger data center looms on the horizon. While its first phase requires only 1.8 GW, it is ultimately
designed to scale to 10 GW
, as much power as all of
New York City
draws at its peak.
Aside from their ravenous power demand, these behemoths share one crucial trait: They will be fed by on-site power plants burning natural gas, not by the electric grid. Counterintuitively, it is data centers’ independence from the grid — coupled with their use of natural gas — that will hike energy costs for American homes and small businesses.
To date, most data centers have been powered by the electric grid, but this is changing fast. Facing
pressure from policymakers
to supply their own power, as well as multi-year delays getting permission to connect to the grid, data center projects increasingly plan to build their own on-site generation capacity,
mostly powered by natural gas
.
A recent
Bloomberg New Energy Finance analysis
finds 100 GW of on-site gas-burning capacity are planned to power data centers across America. That’s equivalent to 18% of the total existing
capacity of all U.S. natural gas power plants
, a staggering amount.
Building your own natural gas power plant might appear to protect other energy customers by reducing new demand on the grid, but that’s not the case. Natural gas is a market-traded commodity, meaning data centers that gobble up lots of natural gas will naturally compete with other gas customers, increasing prices.
That does more than just worsen home heating costs. Since natural gas supplies
43% of U.S. electricity
and gas-fired generators set the price of electricity in most hours, higher natural gas prices also raise electricity costs.
In fact, data centers with on-site gas plants could spike American energy bills more than connecting those data centers to the grid. That’s because policymakers and regulators can require utilities to charge grid-connected data centers sufficiently high rates to cover their full costs or even enough to help
modernize the grid and lower costs for other ratepayers
. However, a data center with its own gas power plant signs a contract with a gas supplier, not with a utility, putting its gas rates outside the jurisdiction of state utility regulators. Data centers can buy gas in bulk and sign long-term contracts (as we’ve seen in
Texas
,
Pennsylvania
and
New Mexico
)
, giving them access to cheap gas, even if this unfairly drives up prices for everyone else.
Since the most efficient combined-cycle turbines that burn natural gas for electricity are back-ordered for
five to seven years
, tech firms are
relying on inefficient equipment
that requires even more gas and creates more pollution. This is creating conflicts across the country, such as in Southaven, Mississippi, where
xAI is being sued
for violating the Clean Air Act and operating inefficient, polluting gas turbines without a permit.
For tech companies, on-site gas plants might seem like a “hack” to speed up power access for data centers, but they’re only exchanging one dependency for another: As tech firms disconnect from the electric grid, they become hooked on the gas grid, where their immense new demand will run into supply bottlenecks, especially during extreme weather
like Winter Storm Fern
. Meanwhile, their on-site gas strategy will likely come under political pressure as residents demand solutions to rising energy bills and air pollution.
Fortunately, there’s a solution that protects data center operators and the public: clean energy. Policymakers should ensure that data centers not simply bring their own electricity — but bring their own clean electricity. Wind and solar backed by batteries, along with enhanced geothermal systems, can be deployed quickly to provide th