tech
April 3, 2026
AI companies are building huge natural gas plants to power data centers. What could go wrong?
Meta, Microsoft, and Google are all betting big on new natural gas power plants to run their AI data centers. They may regret it.
TL;DR
- Tech companies like Microsoft, Google, and Meta are building large natural gas power plants to meet the energy demands of their AI data centers.
- This surge in demand is causing shortages and price increases for critical equipment such as turbines, with order backlogs extending to 2028.
- Companies are securing natural gas supplies, primarily in the southern U.S., to power these facilities.
- Potential risks include natural gas supply limitations, price fluctuations tied to electricity costs, and competition with other industries.
- Extreme weather events, as seen in 2021, could drastically impact natural gas supply and lead to difficult choices between powering data centers and meeting residential heating needs.
- While companies aim to bypass the grid by building plants 'behind the meter,' they are still shifting their consumption to the natural gas grid, potentially driving up prices for everyone.
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