AI companies are building huge natural gas plants to power data centers. What could go wrong?
April 3, 2026
The increasing energy demands from artificial intelligence (AI) have prompted major tech companies like Microsoft, Google, and Meta to invest in natural gas power plants for their data centers. Microsoft is partnering with Chevron and Engine No. 1 in Texas, while Google collaborates with Crusoe in North Texas, and Meta is expanding its Hyperion data center in Louisiana. This surge in demand has led to a shortage of turbines, driving up prices and raising concerns about energy availability, especially during peak demand periods. The reliance on natural gas, which accounts for about 40% of U.S. electricity, poses risks of increased energy costs and competition for resources, potentially sidelining households and industries that also depend on this fuel. Additionally, the environmental implications of using natural gas, a fossil fuel, contradict efforts to reduce carbon emissions and combat climate change. The construction of these plants may also contribute to local air pollution and health risks, highlighting the need for stakeholders to consider the long-term consequences of their energy strategies as AI continues to evolve.