Tech Giants Build Natural Gas Plants to Power AI Data Centers

Microsoft, Google, and Meta are building large natural gas power plants to meet the growing energy demands of their AI data centers. The projects are concentrated in the southern United States, where natural gas reserves are abundant.

Microsoft is collaborating with Chevron and Engine No. 1 on a power plant in West Texas that could generate up to 5 gigawatts of electricity. Google is working with Crusoe to construct a 933-megawatt plant in North Texas. Meta is expanding its Hyperion data center in Louisiana with seven new natural gas plants, raising the facility’s total capacity to 7.46 gigawatts.

The surge in demand for natural gas infrastructure has created shortages of turbines, with prices expected to rise nearly 200% compared to 2019 levels. Delivery times for new turbines have extended to six years, and new orders are not expected to be fulfilled until 2028.

Analysts note that while natural gas remains plentiful, production growth in key U.S. shale regions has slowed. As tech firms move to secure direct fuel supplies and build behind-the-meter plants, concerns are emerging about potential impacts on fuel availability and electricity prices for other sectors and consumers.

The trend highlights the scale of the energy challenge associated with AI infrastructure expansion, as companies seek reliable power sources for increasingly energy-intensive data operations.