AI data center boom drives US to double China in new gas plant builds
A new analysis by Global Energy Monitor finds the US is now building twice as much gas-fired power capacity as China, driven by a surge in AI data center construction. Under-construction projects rose 76% in the first half of 2026, and overall capacity in development grew 50% to 378GW. If all projects are built, US gas fleet could expand by two-thirds, potentially increasing power sector emissions by up to 20%.
The analysis tracked a dramatic reversal in global power construction trends, with US under-construction gas projects jumping 76% in just six months. Total capacity in development grew from 252GW to 378GW, representing roughly one-third of worldwide gas development, with an estimated capital investment exceeding $647bn if all projects proceed.
The surge has created supply bottlenecks for efficient gas turbines, prompting some companies to substitute smaller, less efficient models that produce more pollution. Local resistance is mounting, with two-thirds of over 800 planned datacenters located in drought-affected areas, raising concerns about water consumption alongside emissions and electricity costs.
This shift could significantly affect American ratepayers, who may face higher electricity bills as utilities pass on volatile gas costs and infrastructure investments. Communities near proposed datacenters could experience water stress and local environmental impacts, while the potential 20% rise in power-sector emissions may undermine broader climate progress. The long-term lock-in of gas infrastructure could shape energy markets for decades, though rapid AI demand growth makes forecasting difficult.