As tech companies have searched for new ways to provide electricity for their ever-growing number of data centers, they have increasingly turned to on-site gas-powered generators. This decision will likely have repercussions that will be felt for years to come.   

What's happening?

The massive, power-hungry data centers that power artificial intelligence models and cloud computing have put a growing strain on the United States' aging electrical infrastructure. With demand increasing much faster than new electricity sources are brought online, electricity prices have skyrocketed.

A Bloomberg analysis found that people living near a data center saw their monthly electricity bills spike by as much as 267% in just five years. 

To ensure their data centers have an adequate and reliable power supply, tech giants have increasingly been building on-site power-generation systems. 

"On-site power has moved from being a decision of last resort to a vital business necessity," said K.R. Sridhar, an executive at Bloom Energy, according to Grist. 

Why is it important?

Early on, some observers believed that data centers could be powered mostly by renewable sources like solar and wind. However, as on-site power generation has grown more common, gas has increasingly become the power source of choice. 

Opponents have warned that using gas could have serious environmental and public health consequences. 

"This is a huge proposed build-out," said Cara Fogler of the Sierra Club, per Grist. "Existing coal that's not coming offline and planned gas that's trying to come online are potentially boxing out clean energy." 

According to a Cornell University analysis, by 2030, the new on-site gas-powered power plants could generate as much air pollution annually as adding 10 million cars on the road. 

What's being done about it?

Environmental advocacy groups have tried pushing back against the deluge of new gas-powered plants, but major new projects remain in the works. 

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For example, an enormous data center planned for New Mexico will rely on gas turbines to generate 2,880 megawatts of electricity, more than the entire combined capacity of central New Mexico's main power utility, according to Grist.

"I've never seen something quite this big before, dollar-wise, scale-wise," said Colin Cox, a lawyer at the Center for Biological Diversity, which has opposed the project, per Grist. 

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