CSIRO Report Links AI Boom to Rising Gas Costs

The Commonwealth Scientific and Industrial Research Organisation (CSIRO) released its 2026 GenCost report on Wednesday, identifying the artificial intelligence boom as a primary driver of increasing gas technology costs. The report notes that the rapid construction of large-scale data centers, particularly in the United States, has made the U.S. the second-largest consumer of gas turbines globally, thereby driving up prices.

Despite these inflationary pressures on gas, solar and onshore wind remain the most affordable energy sources. The analysis predicts electricity prices will decrease from $104 per megawatt-hour in 2025 to between $80 and $90 by 2030, though costs may climb after 2030 as aging assets require replacement.

The report also examined the impact of a U.S.-led war with Iran. The CSIRO concluded that while such a conflict is an inflationary event likely to stall cost improvements in 2026, it is improbable that it would raise the costs of battery or solar technology.