Utilities embrace natural gas amid AI power demand surge
- The electric power sector in the U.S. is facing rising electricity demand due to competition among technology companies in artificial intelligence.
- Utilities are planning to add approximately 46 gigawatts of gas-fired power capacity over the next five years.
- Expanding natural gas infrastructure could hinder U.S. climate goals of achieving net zero emissions by 2050.
In recent months, the U.S. has experienced a significant spike in electricity demand attributed to technology companies racing to advance artificial intelligence. This surge has led utilities to reevaluate their initial forecasts regarding natural gas-fired power. Previously, many industry experts believed that the construction of new gas plants would be minimal, as the country transitioned towards cleaner energy sources such as wind, solar, and geothermal. However, given the new demand dynamics, utilities are now planning to bring a substantial amount of gas-fired power online within the next five years. As a consequence of this demand escalation, several major natural gas plants have been announced across the country. Notable examples include Evergy's two new 705-megawatt plants in Kansas, Entergy's vast 2,300-megawatt facility to support Meta’s AI data center in Louisiana, and projects by Duke Energy and Georgia Power in North Carolina and Georgia, respectively. This trend signifies a shift back towards reliance on natural gas, often considered a cheap and reliable source of power in the current economic climate. Environmental analysts warn that expanding the gas-fired power infrastructure could undermine national climate goals. The electric power sector is the second-largest emitter of greenhouse gases in the U.S., and the construction of new gas plants poses a direct threat to achieving net zero emissions by 2050. As John Quigley from the University of Pennsylvania's Kleinman Center for Energy Policy outlines, building new gas plants means continuous carbon dioxide emissions. The push for natural gas plants raises the question of future adaptability and commitment to renewable energy solutions. The promise of renewable energy remains strong, with many experts asserting that sufficient solar, wind, and battery storage projects are already planned to meet growing electricity demand. Nonetheless, the momentum towards natural gas illustrates a persistent reluctance from utilities and grid operators to abandon traditional energy sources. Localized initiatives include the transformation of Pennsylvania’s former Homer City coal plant into a natural gas power station, emphasizing the evident trend toward natural gas as the primary fuel for the foreseeable future, despite its implications for climate change.