AI datacentres plan gas power stations on huge scale

Developers of AI datacentres are planning to build gas-fired power stations on their own sites at a very large scale, according to new research from BloombergNEF. The proposals span the United States, the United Kingdom and mainland Europe, and together would add 181 gigawatts of gas-powered capacity. The Guardian, which reported the findings, says that figure is nearly four times the highest electricity load ever recorded in Great Britain.

The main reason for the plans is delay. Many datacentre projects are waiting too long to connect to national grids, so developers want their own generation instead. BloombergNEF estimates that if the rollout goes ahead, the United States alone, where 90% of the planned on-site gas stations are located, could release about 345 million metric tonnes of carbon dioxide equivalent each year. That is comparable to the yearly emissions of roughly 72.8 million fossil-fuel cars.

Timing of the report

The report came out on Wednesday, while leaders from around the world were meeting in Turkey for the 31st UN climate summit, known as COP31. Electrification, ideally using clean power, is a central topic there. Some key European leaders, including those from France and Germany, are not attending the climate talks. They are heading to Dublin instead, where the EU will host its first AI summit devoted entirely to the technology on Friday.

Mark Daly, head of datacentres and emerging technology at BloombergNEF, said the strong economics of AI have made speed of power supply a top priority for developers. He added that the climate result depends on how much electricity the sites use, how fast grids connect them, and whether grids add cleaner generation. The report says AI datacentre electricity demand could nearly quadruple by 2035, reaching 2,354 terawatt-hours. That would equal 7% of global electricity demand.

Concerns about lock-in

Developers say the gas plants would be temporary, used only until grid connections arrive. Daly warned that once the facilities are running, the economics could keep them burning fossil fuels for much longer, creating a long-term risk of fossil fuel lock-in. The report argues that connecting new datacentres to the grid is the more sustainable path, and that faster connections are essential to limiting emissions.

The UK picture

According to Future Energy Networks, a body that speaks for the UK gas networks, planned UK datacentres made more than 100 gas connection inquiries in 2024-5 because of delays in grid access. Two sites, Wapseys Wood in Buckinghamshire and Quest Park in Bedfordshire, are looking to build their own on-site gas stations. Both are among the first projects fast-tracked under the government’s nationally significant infrastructure project regime, which bypasses locally elected planning authorities.

The Guardian reports that chancellor John Healey has backed temporary on-site fossil fuel stations for datacentres waiting for grid connections, under a scheme known as the datacentre covenant. The newspaper says similar plans are likely at many more UK sites as a result.

Oliver Hayes, who leads policy and campaigns at Global Action Plan, criticised the approach. He argued that any administration committed to cutting emissions should rule out private gas plants for datacentres. He also said few people genuinely expect these plants to be short-lived, and warned that after construction they would keep emissions elevated for a long period.

Frequently asked questions

Sources

• The Guardian: AI datacentres plan on-site power stations on huge scale despite climate risks, research reveals

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