More on Data Centers—How Natural Gas Fits in and What to Look Out For

Abstract

Rising demand for electricity to serve data centers, manufacturing, and other power-consuming sectors of the economy is spurring the development of scores of natural gas-fired plants—up to 100 gigawatts (GW) of new capacity by 2040. How much power those new plants will generate and how much natural gas they will require remain open questions. A recent study indicates that the vast majority of incremental power demand over the next 15 years could be supplied by solar and wind and that demand for natural gas power may remain relatively flat. However, the Trump administration's dim view of most renewables and clear preference for fossil fuels suggests that, at least for the foreseeable future, things may be different from what the study forecast. Making sense of the dueling forecasts and what they mean for energy policy and energy investment can be daunting.