AI’s Gas-Plant Boom and the Fight to Stop It
AI has triggered the biggest gas-plant building boom in history, and a quiet fight to stop it.
Clean Energy vs. Data Centres
Advocates for clean energy cannot compete with the construction speed of data centres, so they are targeting regulators instead.
July 12, 2026 – 3:21 pm
(Image by: Canva)
The AI-driven build-out has sparked a massive boom in natural gas-fired power plants, according to the Associated Press. Aging coal plants are also being extended beyond their retirement dates. The reason? Un glamorous arithmetic: data centres consume vast amounts of electricity, and renewable energy sources like wind and solar cannot keep up with this demand.
State Intervention
Several states are taking matters into their own hands through legislative action. A bill on New York Governor Kathy Hochul’s desk would require large data centres to meet renewable benchmarks starting in 2030, reaching at least 90% renewable energy by 2040. Similar bills have been proposed in California, Illinois, New Jersey, Pennsylvania, and Virginia.
EU’s Approach
Michigan, Oregon, and Minnesota have already passed laws defending existing commitments to emissions-free electricity by 2040. These states are tying data centre operations to clean energy goals, with Michigan requiring hyperscale data centres to reach 90% clean energy within six years to maintain a lucrative sales tax exemption.
Regulatory Shifts
Unable to outcompete the boom, advocates are pushing regulators to allow large power users to build their own clean generation facilities and connect them to the grid. Colorado ordered Xcel Energy to create such a programme, which would benefit customers by expanding the grid infrastructure. Similar deals are in place or pending in eight other states, according to Google.
The Real Fight
The battle is not just about data centres vs. clean energy; it’s about grid access. Whoever controls this access will shape the future of our energy landscape.