An investigation by BloombergNEF has uncovered that AI datacentre developers across the US, UK and Europe are planning to build their own private gas-fired power stations on an enormous scale, bypassing struggling national grids and potentially locking in decades of fossil fuel emissions.
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| Investigation reveals AI datacentre developers plan on-site gas power stations generating 181GW — nearly four times Britain's peak electricity demand — raising fears of long-term fossil fuel lock-in./photo/Getty |
The research, published Wednesday, reveals that proposed datacentres have submitted plans to construct on-site fossil fuel plants capable of generating 181 gigawatts of gas-fired capacity — nearly four times the total peak electricity demand of Great Britain.
The findings come as world leaders gather in Turkey for the 31st UN climate summit (Cop31), where electrification from clean sources is a central theme.
According to BloombergNEF, if the planned rollout proceeds, on-site gas-fired power stations would emit approximately 345 million metric tonnes of carbon dioxide equivalent annually in the US alone, where 90% of these facilities are planned. That is equivalent to the annual greenhouse gas emissions of roughly 72.8 million fossil fuel cars.
By 2035, electricity demand from AI datacentres is predicted to nearly quadruple to 2,354 terawatt-hours — equivalent to 7% of global electricity demand.
The driving force behind this shift is "speed to power." Delays in connecting to national electricity grids have pushed datacentre developers to build their own fossil fuel plants rather than wait.
Mark Daly, head of datacentres and emerging tech at BloombergNEF, said: "The extraordinary economics around AI are making speed to power one of the most important priorities for defining constraints on datacentre developers. The climate outcome will depend not only on how much electricity these facilities use, but on how quickly grids can connect them and whether power systems add cleaner generation alongside that demand."
Daly warned that while developers claim their gas-fired power supplies will be temporary, once operational, the economics could encourage continued generation — creating a longer-term fossil-fuel lock-in risk.
In the UK, planned datacentres made more than 100 inquiries in 2024-25 to connect to gas due to grid delays, according to Future Energy Networks, the representative body for UK gas networks.
Sites including Wapseys Wood in Buckinghamshire and Quest Park in Bedfordshire are seeking to build their own on-site gas-fired power stations. Both are among the first to be fast-tracked through the government's nationally significant infrastructure project regime, which bypasses locally elected planning authorities. Concerns have intensified after Chancellor John Healey gave the green light for datacentres to build and run temporary on-site fossil fuel power stations while awaiting grid connections, as part of a so-called datacentre covenant.