Custom gas plants for data centers could raise U.S. power emissions by up to one-third

Data center builders are increasingly proposing on-site natural-gas power plants to meet urgent electricity needs, a trend that could add about 318 million metric tons of CO₂ annually. This would raise U.S. power-sector emissions by roughly 20% and potentially up to a third if the plants operate at full capacity. The analysis tracked projects totaling 126 gigawatts of planned on-site generation across 22 states, with more than a third located in Texas.

Major cloud operators, including Amazon and Microsoft, are among the investors, with some sites capable of producing over 10 gigawatts of power—enough for a large city on a hot day. The shift toward behind-the-meter plants reflects delays in connecting new data centers to regulated grids, prompting criticism from renewable advocates who warn the move could jeopardize corporate climate pledges.