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Environment & Climate

US gas power construction doubles China's rate amid AI datacenter surge, report finds

A 76% rise in under-construction gas plants driven by tech industry electricity demands reversed long-standing global capacity trends in early 2026.

Updated Aug 25, 2026 · 10:20 UTC1 reports

The short version

  • A Global Energy Monitor report shows US under-construction gas power projects grew 76% in early 2026 to reach 378GW in development, double the under-construction capacity of China.
  • Around half of the new gas power capacity is tied directly to electricity demands from AI datacenters built by tech companies including Amazon, Google, OpenAI, and xAI.
  • The rapid expansion threatens to increase US power sector emissions by up to 20% and has sparked municipal bans, local opposition, and turbine supply shortages.
  • The Trump administration has streamlined environmental reviews to encourage construction, while some state and local governments are enacting moratoria.

Key facts

  • US under-construction gas-fired power capacity increased by 76% in the first half of 2026, overtaking China to become the world's largest developer of new gas power.[The Guardian]
  • Total US gas power capacity in development reached 378GW, accounting for one-third of the global total under development.[The Guardian]
  • Approximately half of the newly proposed US gas generation capacity is designated to supply energy to planned AI datacenters.[The Guardian]
  • High demand for power infrastructure has created a shortage of highly efficient gas turbines, prompting some operators to deploy smaller, less efficient units.[The Guardian]
  • More than two-thirds of the over 800 planned datacenters in the US are cited in areas currently experiencing drought conditions.[The Guardian]
  • The Trump administration has cut environmental review requirements for datacenter builds, whereas New York state and several municipalities have imposed temporary moratoria or local restrictions.[The Guardian]

What remains uncertain

  • It remains uncertain whether all 378GW of planned and pre-construction gas power projects will secure funding and regulatory clearance to complete construction.[The Guardian]
  • The exact magnitude of power sector emissions increases resulting from datacenter expansion is estimated at up to 20%, but the actual long-term impact depends on final generation sources.[The Guardian]

Sources