"The cost to build a new combined cycle gas turbine (CCGT) power plant has risen from less than $1,500 per kilowatt of generating capacity in 2023 to $2,157 last year, according to a new report from BloombergNEF."
"Data center operators have been urged by the Trump administration to 'bring their own power,' but utilities tend to pass on the cost of new generation to customers, leading to a growing backlash to data centers among the general public."
"New additions are expected to reach 2.7x current demand, pushing it up from 40 gigawatts today to 106 gigawatts by 2035, with the average data center projected to exceed 100 megawatts."
"The scramble for natural gas power plants has caused a shortage of gas turbines, with prices for the equipment expected to rise significantly by the end of this year."
Tech companies like Microsoft and Meta are rapidly building natural gas power plants for data centers, with construction costs rising 66% in two years. The price to build a combined cycle gas turbine power plant increased from under $1,500 to $2,157 per kilowatt. Data centers are a major electricity demand driver, expected to increase from 40 gigawatts to 106 gigawatts by 2035. The shift towards natural gas is influenced by rising electricity demand and public opposition to data centers, leading to a shortage of gas turbines.
Read at TechCrunch
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