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

The United States has the world's second-largest pipeline of gas-fired power plants in development, totaling over 85 GW, largely fueled by speculation regarding AI energy needs. However, most of these projects are in early stages, and there is a significant risk that they could become stranded assets if AI power demand does not materialize. The report highlights that renewables and storage are currently cheaper and faster to deploy than new gas power, while specific regions like Texas and the PJM Interconnection area are seeing the highest concentration of these developments.

• The United States has more than doubled its oil- and gas-fired capacity in development over the last year to over 85 GW, making it the second-largest pipeline globally after China.
• Most proposed gas plants are in early development phases; less than 20% have reached construction, with nearly half still in the 'announced' stage. If all are built, the U.S. fleet would grow by 15% at an estimated capital cost exceeding US$85 billion.
• Texas and the PJM Interconnection region are primary hubs for this growth. Texas has 22.6 GW of capacity in development, while PJM has 16 GW, with over half of PJM's projects being conversions or replacements of coal plants.
• There is significant uncertainty regarding AI energy demand. While some studies suggest data center demand could triple by 2028, others, such as the emergence of the DeepSeek model, challenge the notion that AI requires massive amounts of energy.
• Renewables and battery storage are identified as more suitable for meeting immediate demand growth because they are cheaper and faster to deploy than new gas power, which faces rising costs and longer construction timelines.

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} }