AI Giants Race for Gas, Risks Loom Large

Microsoft, Google, and Meta are racing to build massive natural gas power plants in the southern U.S. to fuel their AI data centers, with combined capacities reaching into the gigawatts. The scramble has already triggered turbine shortages, with prices projected to rise 195% by year-end and delivery waits stretching six years. The strategy carries serious risks. Slowing shale gas production, volatile pricing, extreme weather events, and competition from other gas-dependent industries could all disrupt supply. By moving power generation behind the meter, tech companies may avoid grid scrutiny but still drive up energy costs for households and businesses alike.