US technology giants are building large-scale natural gas power plants to power AI data centers as computing demand surges, with Amazon planning 35 gas turbines totaling 7.65 GW at a data center project in Pecos County, Texas.

The project's approved annual carbon dioxide emission cap of 33 million tonnes would make it the largest single power facility by emissions in the US if operated at permitted levels, nearly double the emissions of the country's previous top-emitting coal plant.

Amazon and Microsoft's two projects alone could exceed 10 GW of generating capacity, enough to meet New York City's summer electricity demand, with combined annual emissions of up to 45 million tonnes of CO2 equivalent, slightly below half of Washington state's total annual emissions.

The International Energy Agency projects global data center electricity consumption will surpass 1,000 TWh in 2026, nearly equivalent to Japan's total annual electricity use. Stanford University's 2026 AI Index Report shows global AI data center power capacity has reached 29.6 GW, approaching New York state's peak electricity demand.

Industry forecasts show US data center power demand rising from 31 GW in 2025 to 41 GW in 2026 and 66 GW in 2027, more than doubling in two years. By 2027, data centers will account for 8.5% of US summer peak power demand, up from 4.1% in 2025.

The massive power requirements have exceeded the capacity of existing US grid infrastructure. Some regions are suspending approval of new projects over supply reliability concerns, while approved data centers may wait years for grid connection.

The entire industry is under enormous pressure to secure electricity as quickly as possible. Whether the power is clean or heavily polluting is largely irrelevant to them, said the Energy and Policy Institute, a utility watchdog advocating renewable energy.

Data center site selection is now driven by power availability rather than network proximity to customers, prompting tech giants to bypass the grid by building on-site gas plants to avoid lengthy approval processes.

Microsoft's 2025 sustainability report shows total emissions reached 20 million tonnes of CO2 equivalent, up 25% year on year, primarily driven by new data center construction. "AI infrastructure is driving up demand for energy, water, land and raw materials, while sustainable solutions are not scaling fast enough to keep pace," Microsoft's president and chief sustainability officer said in the report.

Google acknowledged its emissions have risen 48% above its 2019 baseline due to AI infrastructure expansion. These climate targets were largely set before the AI boom, when tech companies faced sustained pressure from employees and activists to cut emissions.

The US is leading a global expansion of gas-fired power generation due to energy-intensive AI data centers. Global gas-fired power capacity under construction grew 31% in 2025, with nearly a quarter of new capacity expected in the US. If all US gas projects under development are completed, they would generate 12.1 billion tonnes of CO2 over their lifetimes, double the country's current annual emissions from all sources.

An analysis of 60 large data centers being built by Amazon, Google, Meta and Microsoft in the US found they could collectively emit about 101.5 million tonnes of CO2 annually once fully operational, roughly 7% of total US power sector emissions in 2025. US data center direct emissions are estimated at 90 million tonnes in 2025, rising to 404 million tonnes by 2030, a 4.5-fold increase.

Some tech companies are pursuing technological solutions. Google signed its first gas carbon capture power agreement in October 2025 to purchase electricity from a 400 MW Illinois plant equipped with carbon capture and storage technology capable of capturing about 90% of CO2 emissions. NextEra Energy, the largest US renewable developer, announced in December 2025 a partnership with Exxon Mobil to build a 1.2 GW gas plant with carbon capture technology dedicated to data center power supply.

Carbon capture technology remains at an early stage with high costs and uncertain scalability. UN Secretary-General Antonio Guterres called in July 2025 for global tech companies to commit to powering all data centers with renewable energy by 2030, but US climate commitments face severe strain amid the computing power race.