Surge in Data Center Demand Causes Natural Gas Power Plant Costs to Soar by 66%

2026-04-27 · TechCrunch AI · Original

The costs associated with constructing natural gas power plants have experienced a dramatic increase, nearly doubling over the past two years. This surge is primarily driven by an unprecedented rise in electricity demand from data centers, which are expanding rapidly to support the growing digital landscape. As a result, the construction timeline for these power facilities has also extended, taking 23% longer to complete. This trend highlights the significant impact that the tech industry's energy requirements are having on infrastructure costs and timelines, raising concerns about sustainability and resource allocation in the face of ever-increasing data consumption.