Data Center Growth Could Drive 7.3% Surge in Natural Gas Power
The U.S. Energy Information Administration (EIA) reports that surging electricity demand, primarily driven by data center expansion and industrial growth, could significantly increase fossil fuel power generation through 2027. In a high-demand scenario, incremental power needs would likely be met by natural gas- and coal-fired plants, as generating capacity remains fixed in the short term. Consequently, natural gas generation could rise by 7.3%, while the projected decline of coal would slow significantly. This increased demand is expected to raise wholesale electricity prices nationwide. Read More “Data Center Growth Could Drive 7.3% Surge in Natural Gas Power”
The West Virginia Senate approved House Bill (HB) 4983 on Wednesday, establishing the certification process for new data centers and the gas-fired microgrids intended to power them. This is a key piece of the “gas-to-data-center” story we’ve been following. The final version includes new language requiring developers to study water usage, addressing local concerns while still providing a regulatory pathway for the “behind-the-meter” generation projects that are currently the primary bridge solution for the AI industry. 
Even a leftist liberal putz like Pennsylvania Governor Josh Shapiro can have a good idea every now and again. (Credit where credit is due.) Shapiro is introducing what he calls GRID (Governor’s Responsible Infrastructure Development) standards to incentivize Pennsylvania data center developers to voluntarily adopt higher environmental and transparency benchmarks. In exchange for committing to water conservation, local hiring, and independent power generation, projects can access “Fast Track” permitting to accelerate construction. 
We won’t bore you with links to numerous stories we’ve written pointing out how the environmental left has pivoted from anti-fracking to anti-data center. We believe we were one of the first to make that observation (about a year ago). At any rate, one of the worst of the worst “environmental” organizations, Food & Water Watch (FWW), has all but abandoned its anti-fracking work to focus on opposing and blocking AI data centers. It’s absolutely, positively, anti-progress (not to mention anti-American). FWW’s latest campaign is aimed at convincing Congress and state legislatures (like Pennsylvania) to pass a three-year moratorium on building new data centers. 
A study by the Allegheny Conference on Community Development indicates that a proposed 500 to 700-megawatt hyperscale data center at the Zediker site in Washington County, PA, could generate $407 million for the local economy and create 2,364 jobs. Owned by CNX Resources Corp., the former coal mine is being marketed for generative AI facilities, leveraging nearby natural gas supplies and remediated mine gas to power the operation. While no official deal has been struck, the project is expected to yield $67.5 million in tax revenue, positioning the site as a transformative hub for high-tech investment and regional prosperity. 
Although there are legitimate concerns over data centers locating in populated communities (noise, water use, etc.), make no mistake: The anti-data center movement is nothing more than the anti-fracking movement in new clothes (see 
Despite political rhetoric scapegoating data centers for rising electricity costs, EIA data reveals that electricity price hikes began long before the data center industry’s expansion. States with high concentrations of data centers, such as Virginia and Texas, maintain residential electric rates below the national average, while Vermont has the fewest facilities but significantly higher costs. An excellent article appearing on RealClearEnergy identifies systemic issues—including aging infrastructure and regulatory inertia—as the true drivers of rising bills. Rather than blaming data centers, the article argues for modernizing the grid and aggressively increasing energy production to meet growing demand. Technology can actually create a more efficient, lower-cost electrical system. 
Virginia Senate Bill 253, introduced by State Senator Louise Lucas (D-Portsmouth), aims to shift energy infrastructure costs from residents to data centers, potentially saving households a whopping $65 annually. The legislation requires data centers—which account for 20% of Dominion Energy’s sales—to fund their own electrical substations and cover specific “capacity costs.” If the bill becomes law and the proposals in it receive approval from the State Corporation Commission (SCC), the typical monthly energy bill for data centers would rise by about 16%, while the typical bill for residential and other customers would decrease by 3% to 3.5%. Looks like Virginia, with more data centers than any other state in the union, is now closed for data center business. Too bad. 
Antis somehow got to the board of commissioners in Montour County, PA. Yesterday, the commissioners voted unanimously to reject Talen Energy’s request to rezone empty agricultural land near Talen’s Montour Power Plant (converted from coal to run on Marcellus gas in 2023) for a proposed data center. This decision followed community concerns stoked by lying groups like Food & Water Watch regarding “potential environmental impacts” on the nearby Montour Preserve. 
A Cleanview report reveals that nearly 75% of planned on-site power for U.S. data centers is natural gas-fired as operators bypass traditional grid connections. Driven by surging AI demands and grid delays of up to seven years, this trend involves 46 projects totaling 56 gigawatts. While developers publicly highlight renewables, immediate capacity remains dominated by gas due to its reliability. Development is concentrated in gas-rich regions like Texas and Pennsylvania. To overcome equipment shortages, some firms use creative solutions, such as repurposed jet engines. This shift underscores natural gas’s vital role in supporting the rapid expansion of American AI infrastructure. 
In a report coming from Luzerne County, PA (northeastern part of the state), rural landowners in Hollenback Township are allegedly being offered $175,000 per acre to sell their property for a massive artificial intelligence (AI) data center campus. This “data center takeover” has alarmed some Luzerne County residents who fear the project will destroy the area’s rural character and strain local utility resources. The high-value offers follow months of community pushback led by State Representative Jamie Walsh (a Republican), who has criticized the secrecy surrounding these large-scale developments. 
Last July, President Trump and PA U.S. Senator Dave McCormick attended a meeting in Pittsburgh to announce an amazing $92 billion of private (no taxpayer funding) investment in the Keystone State, mainly in the data center sector (see 
In December, MDN reported that pipeline giant Williams, through its new subsidiary, Will-Power, plans to build a third gas-fired power plant to power a Meta (Facebook) data center complex in Bowling Green, OH (see