AI Datacentre Developers Plan On-Site Gas Power Plants

AI datacentre developers across the United States, United Kingdom, and mainland Europe are planning to build on-site gas-fired power stations to circumvent national grid connection delays. Research from BloombergNEF indicates these proposals could create 181GW of gas-fired capacity, with 90% of the planned stations located in the US. If implemented, these facilities could emit roughly 345 million metric tonnes of carbon dioxide equivalent annually in the US alone.

In the United Kingdom, Chancellor John Healey authorized the use of temporary on-site fossil fuel power stations through a datacentre covenant. While developers describe these power sources as temporary, BloombergNEF warns that the infrastructure could lock in high emissions for years. This shift occurs as global leaders gather for the 31st UN climate summit in Turkey and EU leaders prepare for an AI summit in Dublin.

Climate advocates have criticized the UK government's decision. Oliver Hayes, head of policy and campaigns at Global Action Plan, stated that private gas power stations for datacentres should be a red line for any government serious about climate action. Mark Daly of BloombergNEF noted that the economics of AI have made speed to power a primary priority for developers.