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Data center gas plants could sharply raise US power sector emissions
A Bloomberg News analysis of 99 proposed behind-the-meter style plants estimates 318 million metric tons of carbon dioxide a year if run at standard rates.
Data center developers are increasingly planning bespoke natural gas power projects, a shift that could worsen US climate goals and raise carbon emissions tied to electricity production, Insurance Journal reports.
A Bloomberg News analysis, cited by Insurance Journal, tracked 99 proposed plants that would emit about 318 million metric tons of carbon dioxide annually if operated at industry-standard rates. That compares with about 1,485 million metric tons emitted by the entire US electric power industry last year, according to Energy Information Administration data, implying one slice of data center power could lift overall power-sector emissions by about 20%, and potentially up to about one-third if plants run at full tilt.
Insurance Journal links the trend to grid constraints and delays: the data center building boom has strained the US electricity system, contributing to reliability concerns and moratoriums on new approvals. Even greenlit projects face yearslong connection delays to regulated electricity grids, leading some developers to pursue behind-the-meter projects that can be permitted and built without utility or independent system operator approvals.
Insurance Journal notes that not all proposed plants will be built, with Bloomberg’s emissions estimate based on 126 gigawatts of planned on-site gas generation capacity tracked by BloombergNEF. The analysis uses assumptions for round-the-clock use ranging from 60% to 100% and a typical gas burn rate for a single-cycle generator, with emissions expected to vary based on utilization and generator fuel efficiency. The piece also says the projects include plans backed by major AI labs, OpenAI and Anthropic PBC, and that rush-driven demand has produced some phantom or long-shot pitches.
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