The rapid growth of artificial intelligence has created unprecedented electricity demand, prompting major technology companies to invest heavily in new natural gas power plants across the United States. Amazon, Nvidia in partnership with SoftBank, and Microsoft are among the largest players developing fossil-fuel-powered energy infrastructure to support hyperscale data center operations. As of the first half of 2026, the country had 378 gigawatts of gas-fired power capacity under development, with 189 gigawatts directly tied to data center projects, representing a 50 percent increase in just six months.
The scale of energy consumption required by these facilities is substantial. According to projections, data centers permitted through 2025 could consume between 224.3 and 358.8 terawatt-hours of electricity annually, representing a 50 percent increase and equivalent to the total annual energy usage of Mexico. Texas has become the primary hub for these developments, accounting for a significant portion of new proposals. The United States now represents approximately one-third of all planned gas-fired capacity globally.
However, significant obstacles may impede the realization of these projects. Supply chain constraints have created yearslong lead times for gas turbines, and many facilities remain in early development stages. Growing public opposition and political pressure present additional headwinds, with recent polling indicating that 75 percent of American voters oppose data center development in their communities. Texas, historically welcoming to such projects, has recently paused new data center approvals.
The expansion raises concerns about energy costs and environmental impact. Residential utility customers are bearing much of the financial burden for infrastructure expansion that primarily benefits large corporations. Additionally, emissions from major technology companies have increased substantially year-over-year as data center operations expand. The Trump administration has attempted to address public concerns by requiring artificial intelligence firms to supply their own energy for new projects, though this approach carries tradeoffs for both consumers and corporate emissions reduction goals.
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