Proposed gas-fired power plants in the United States rise due to AI energy demand speculation, but remain largely in early development stage

A Global Energy Monitor briefing reports a surge in proposed gas-fired power plants in the United States, driven by speculation over AI energy demand. While the U.S. now has the world's second-largest pipeline of such projects, most remain in early development stages, risking billions in stranded assets if demand forecasts prove inaccurate.

• The United States has more than doubled its oil- and gas-fired capacity in development over the last year, reaching over 85 gigawatts (GW). This growth places the U.S. second globally for projects in development, trailing only China. If all these projects are completed, the existing fleet would increase by 15% with estimated capital costs exceeding US$85 billion.
• Despite the high volume of proposed projects, most are in early stages; less than one-fifth have reached the construction phase, while nearly half are still in the 'announced' phase. Texas has the highest planned buildout with 22.6 GW of capacity in development, though nearly 15 GW of that remains in the announced phase.
• The PJM Interconnection region, which covers thirteen states and includes Northern Virginia (hosting 70% of the world's data centers), has 16 GW of in-development gas-fired capacity. More than half of these PJM projects are replacements or conversions of coal-fired plants. Nationally, coal-to-gas conversions or replacements account for approximately 27 GW, or nearly one-third of all in-development oil- and gas-fired capacity in the U.S.
• There is significant uncertainty regarding AI-driven power demand. While a Department of Energy-funded study suggests data center demand could triple in three years and require 33–91 GW of new capacity by 2028, the emergence of more energy-efficient models like DeepSeek challenges the assumption that AI requires massive energy increases. This discrepancy creates a risk of overbuilding gas infrastructure and creating stranded assets.
• Renewables and battery storage are identified as more suitable for meeting immediate data center growth than gas power due to lower costs and faster deployment. NextEra Energy indicated that unplanned gas generation may not be available until 2030 or later, while renewables are "ready now." Additionally, GE Vernova reported that new combined-cycle build costs are rising, reaching $2,000 per kilowatt.

APA

Global Energy Monitor (2025). Proposed gas-fired power plants in the United States rise due to AI energy demand speculation, but remain largely in early development stage. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-briefing-US-gas-plants-AI-Energy-Demand-Feb-2025_11.pdf

Chicago

Global Energy Monitor. Proposed gas-fired power plants in the United States rise due to AI energy demand speculation, but remain largely in early development stage. 2025. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-briefing-US-gas-plants-AI-Energy-Demand-Feb-2025_11.pdf.

Wikipedia

{{cite report |author=Global Energy Monitor |title=Proposed gas-fired power plants in the United States rise due to AI energy demand speculation, but remain largely in early development stage |date=February 2025 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-briefing-US-gas-plants-AI-Energy-Demand-Feb-2025_11.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalenergymonitor2025proposed, author = {{Global Energy Monitor}}, title = {{Proposed gas-fired power plants in the United States rise due to AI energy demand speculation, but remain largely in early development stage}}, institution = {Global Energy Monitor}, year = {2025}, month = feb, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-briefing-US-gas-plants-AI-Energy-Demand-Feb-2025_11.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }