The cost to build natural gas power plants has surged 66% in two years, rising from under $1,500 per kilowatt in 2023 to $2,157 in 2024, driven largely by data center electricity demand. Construction timelines have also grown 23% longer. Gas turbine prices are expected to reach 195% above 2019 levels by year-end, with waitlists extending into the early 2030s. Data center electricity demand is projected to grow from 40 GW today to 106 GW by 2035. While Microsoft, Meta, and utilities rush toward natural gas, Google is pursuing an alternative strategy using renewables paired with long-duration iron-air battery storage.
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