Industry
Data center demand drives 66% surge in natural gas power plant costs
The cost to build natural gas power plants has spiked 66% in the last two years, with prices rising from less than 1,500 per kilowatt in 2023 to 2,157 in 2025 , driven by surging demand from data cent
The cost to build natural gas power plants has spiked 66% in the last two years, with prices rising from less than $1,500 per kilowatt in 2023 to $2,157 in 2025 , driven by surging demand from data centers powering AI infrastructure. Construction times have also increased, now taking 23% longer to complete , as tech companies like Microsoft and Meta compete for limited turbine production capacity. Data centers are a major driver of electricity demand growth, prompting utilities and tech firms to invest heavily in natural gas generation , creating bottlenecks in supply chains and labor markets that further inflate project costs.
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Source: TechCrunch AI | 2026-04-27