AI data centers plan gas generation of 181 GW due to delays in grid connections

Developers of data centers for AI plan to build gas power plants directly on-site to ensure power supply, according to a BloombergNEF study. In the U.S., the U.K., and mainland Europe, gas generation projects with a total capacity of 181 GW have been announced due to delays in connecting to national power grids. This is almost four times the peak electricity demand in the U.K.

According to BloombergNEF, if the announced projects are implemented, in the U.S., where 90% of the planned on-site gas stations are concentrated, they could emit about 345 million tons of CO2 equivalent per year. This is comparable to the annual emissions of approximately 72.8 million fossil fuel-powered passenger cars.

The report was published on Wednesday, when world leaders gathered in Turkey for the 31st UN climate summit. Some key European leaders, including representatives from France and Germany, did not attend COP31: they are heading to Dublin, where the first specialized EU summit on AI will be held on Friday.

Mark Daly, head of data centers and new technologies at BloombergNEF, stated: “The extraordinary economy around AI makes the speed of connecting to energy one of the most critical priorities defining constraints for data center developers. The climate outcome will depend not only on how much electricity these facilities use but also on how quickly grids can connect them and whether energy systems will add cleaner generation along with this demand.”

According to the report's forecast, by 2035, the electricity demand of AI data centers will nearly quadruple to 2,354 TWh, or 7% of global consumption. Developers claim that gas capacities will be temporary during the wait for grid connections. However, after launch, the economy may encourage them to continue generation, creating a risk of long-term reliance on fossil fuels, BloombergNEF notes. The report states that connecting new data centers to grids is a more sustainable option, and accelerating such connections is critical to limiting emissions and the risk of fossil fuel entrenchment.

Future Energy Networks, representing the U.K.'s gas networks, reported that in 2024–2025, planned British data centers requested gas connections over 100 times due to delays in accessing power grids.