Natural Gas Power Plant Costs Surge 66% Due to Rising Data Center Demand
Natural gas power plant construction costs have increased by 66% over the past two years, driven by rising demand from data centers operated by companies like Microsoft and Meta. The cost to build a combined cycle gas turbine (CCGT) power plant has risen from $1,500 to $2,157 per kilowatt, with project timelines also extending by 23%. This surge is attributed to the rapid growth of data centers, which are expected to increase electricity demand significantly by 2035.
Topics: BloombergNEF report data center demand energy costs Meta Microsoft natural gas power plants