A Massive Buildout of Data Centers Powered by Gas Is the Opposite of Affordability

This past year, our communities were hit with skyrocketing power bills as electricity prices increased at double the rate of inflation. A new Sierra Club tool shows that, to make matters worse, utility companies in the US are planning a massive gas buildout, and it’s going to cost everyday American families even more.

The Sierra Club’s new gas plant tracker shows that utilities are planning to build 271 gigawatts of new gas power plant capacity at over 480 more expensive, polluting gas plants. This is over 40% more than all the coal capacity that is still online. This level of buildout would increase currently online gas power plant capacity by nearly 50% nationwide.

These companies have drastically increased their plans for new gas in the last few years, more than doubling planned gas power plants since the start of 2020.

This is a massive proposed buildout of new fossil fuel infrastructure that stretches across the country; new gas power plants are currently planned in 42 states. Texas has the most planned gas power plant capacity of any state followed by Georgia, Indiana, Virginia, Missouri, and Arizona.

Data center developers and utilities can stop this onslaught of plans for new gas power plants and rely on affordable, available clean energy options instead.

What do these states, spanning across the country, have in common? Data centers. All of these states face major data center proposals.

Gas power plants already provide more electricity for data center use than any other fuel, and that portion is predicted to grow without more renewable buildout. In 2024 in the US, new data center demand rivaled the amount of clean energy brought online. Data center demand is set to far exceed clean energy additions in 2025 through 2028.

Data center demand projections are still highly uncertain, meaning this level of demand may not materialize. Instead of carefully assessing this uncertainty, utilities have been too quick to propose ever more gas power plants, leaving customers on the hook to foot the bill.

Southern Company, which operates electric utilities primarily in Georgia, Alabama, and Mississippi, has the most planned gas power plant capacity of any parent company—over 20 gigawatts. This planned gas buildout is directly tied to data center proposals; for example, in Georgia, Southern subsidiary Georgia Power is planning a historic buildout of new resources specifically to serve growing demand, which is driven by data centers. What does Georgia Power want to make up the majority of that buildout? New gas power plants.

If you’ve recently looked at your utility bill and wondered why your energy costs have skyrocketed, you’re not alone. In 2025, households on average paid nearly 10% more on their utility bills than in 2024, outpacing wage growth and overall inflation. These plans to add even more gas power plants will continue to drive up our bills.

When a utility company decides to build a new gas power plant, the money it takes to build and maintain it does not come from the utility’s CEO or the Big Tech companies who want more electricity; we pay for the gas power plant in our utility bills every month. The cost of building and maintaining gas power plants has significantly and persistently increased in the US, contributing to increased prices for customers across the country. In contrast, the cost of renewables continues to fall.

When our utility companies fail to build enough low-cost clean electricity and instead increase their reliance on expensive fossil fuel power plants—as many are doing in response to data center demand—electricity prices rise.

In Virginia, for example, Dominion Energy is planning to build a massive new gas power plant that will cost Virginians at least $8 billion by the utility’s own estimates over the lifetime of the plant; the gas power plant is part of a buildout that Dominion says is necessary due to data center growth. Dominion projects that residential electric bills will more than double over the next 15 years, primarily due to data centers’ growing energy needs.

In Missouri, Ameren wants to build multiple new gas power plants to serve data centers. A single one of those gas power plants is expected to cost $900 million up front, before taking into account the volatile cost of fuel and maintenance needed throughout the plant’s lifetime. The same story is playing out across the country.