The U.S. has overtaken China in new gas-fired power plant construction, driven largely by a surge in AI data center development. According to a report, the buildout could also significantly increase greenhouse gas emissions if the proposed gas projects are completed.
The U.S. has seen a 76% increase in gas-fired power projects under construction in the first half of this year. Previously, China's rapid economic growth had led it to surpass America in new gas power generation. However, the recent AI boom has reversed this trend. The U.S. is now building twice as much gas-fired capacity as China and more than any other country globally, according to a new report by Global Energy Monitor (GEM) on Tuesday.
Since January, the total gas power capacity under development in the U.S. has increased by 50%, from 252GW to 378GW. If all these projects are completed, the U.S. will expand its gas fleet by approximately two-thirds, costing over $647 billion, as per GEM's findings. This reliance on gas, a fossil fuel, instead of renewables, could potentially increase U.S. power emissions by up to 20%.
Jenny Martos, a project manager at GEM, said, "Six months ago, China had more gas plants under construction, but that has now flipped. Building all of this gas for AI locks in decades of pollution, and it is also locking in dependence on a volatile fuel cost, which will get passed down to rate payers."
Trump Defends AI Data Center Boom as GOP Fears Backlash
This surge in gas-fired power plant construction comes in the wake of President Donald Trump's defense of the U.S. data-center boom. He argued that communities rejecting these projects are "making a mistake" as AI infrastructure can deliver jobs, investment, and tax revenue. Trump also mentioned that these data centers are not draining local grids, as "they're making their own power plants," although many facilities remain dependent on regional grids.
Previously, Trump even called data centers more precious than oil. However, there has been growing opposition to new AI infrastructure projects across the U.S. Trump acknowledged this, stating that data centers could use "a little public relations help."
In July, the White House expanded its voluntary Ratepayer Protection Pledge for AI data centers to prevent them from increasing residential electricity bills. Current signatories of the pledge include Alphabet Inc. (GOOG) (GOOGL), Microsoft Corp. (MSFT), Meta Platforms Inc. (META), Oracle Corp. (ORCL), OpenAI, xAI, and Amazon.com Inc. (AMZN).
However, a report indicated that the National Republican Senatorial Committee (NRSC) has privately alerted top AI firms about the potential political fallout from the negative public opinion surrounding data centers. The Republicans fear that if this backlash results in the defeat of Sen. Jon Husted (R-Ohio), it could discourage politicians across the country from backing future data center projects.
