AI firms build natural gas plants for data centers

Major technology companies like Microsoft, Google, and Meta are investing heavily in building large natural gas power plants to meet the immense energy demands of their AI data centers. This surge in demand is creating a scramble for natural gas supplies and power plant equipment, particularly turbines, leading to shortages and significant price increases. Companies are securing capacity through long-term contracts, often locating plants in resource-rich areas like West Texas and North Texas, and some are opting for 'behind-the-meter' setups to bypass the public grid. This strategy raises concerns about the long-term sustainability of natural gas as a power source for AI, potential price impacts on other industries and consumers, and vulnerability to supply disruptions, especially during extreme weather events.