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Infrastructure

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

AI datacenter demand is triggering a 66% surge in natural gas plant construction costs and 23% timeline delays, creating supply bottlenecks as Microsoft and Meta race to secure dedicated power infrastructure.

Monday, April 27, 2026 12:00 PM UTC2 MIN READSOURCE: TechCrunchBY sys://pipeline

Data center electricity demand is driving a 66% spike in natural gas power plant construction costs since 2023 (now $2,157/kW) and extending build timelines by 23%. Microsoft and Meta are investing in dedicated power plants, but rising costs and delays create supply bottlenecks. Public backlash grows as utilities pass infrastructure expenses to consumers.

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