Data center demand drives 66% surge in natural gas power plant costs

BloombergNEF says the cost to build a new combined-cycle gas turbine plant has jumped 66% in two years.

Construction timelines are also getting longer as data center demand drives up electricity needs and tightens gas turbine supply.

The trend makes natural gas a less practical option for powering fast-growing data centers.

That could push utilities and tech companies to move faster on cheaper low-carbon alternatives, including long-duration storage.