"Microsoft is collaborating with Chevron and Engine No. 1 to construct a natural gas power plant in West Texas, potentially generating 5 gigawatts of electricity. Google is also partnering with Crusoe for a 933 MW plant in North Texas, while Meta is expanding its Hyperion data center in Louisiana with seven additional natural gas plants, increasing its capacity to 7.46 GW."
"The U.S. Geological Survey has estimated that one region alone has enough natural gas to supply the entire United States for 10 months. This has led to a competitive environment among data center operators eager to secure their share of these resources."
"The surge in natural gas investments has resulted in a turbine shortage, with prices projected to increase by 195% by the end of the year compared to 2019. Companies are facing delays in placing new orders until 2028, with turbine delivery times extending to six years."
Tech companies are investing in natural gas power plants to meet the energy demands of AI. Microsoft, Google, and Meta are leading this trend in the southern U.S., where significant natural gas deposits exist. The rush for natural gas has created a turbine shortage, with prices expected to rise significantly. Companies are betting on the continued need for power in the AI era, but this assumption may lead to regrets as the market evolves.
Read at TechCrunch
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