Data Center Needs Drive Swath of U.S. Gas-Fired Power Projects

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

The bulk of investment in fourth-quarter kickoffs for gas-fired power plants across the U.S. is attributed to projects attached to data centers, which are turning to the fossil fuel to run their facilities.

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Data-Driven Demand

Natural gas still is the dominant source for power generation across the U.S., but with an increasingly common customer: Data centers, which continue to spring up across the U.S. amid growing pushback from residents and political leaders. Industrial Info Resources is tracking more than $13 billion worth of capital-spending projects for U.S.-based gas-fired power generation that could kick off as early as the fourth quarter, about $8 billion of which is attributed to grassroot projects.

According to Industrial Info Resources data, two of the highest-valued projects are designed to supply power directly to massive, sprawling data centers. Amazon.com is partnering with Pacifico Energy Group to develop the GW Ranch in Fort Stockton, Texas, a hyperscale data-center campus that will be supported by its own 1.3-gigawatt (GW) gas-fired power plant, which will include 500 megawatts (MW) of battery storage.

Ultimately, Amazon's campus could comprise up to 25 buildings across 8,400 acres. The gas-fired plant represents Amazon's first private, "behind-the-meter" project for one of its data centers. Industrial Info Resources offers more information on this development in its Global Market Intelligence (GMI) Power Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report; readers also can consult a full list of reports for projects related to the Fort Stockton campus.

Elon Musk's SpaceX, through subsidiary xAI Corporation, is at work on its own behind-the-meter project at its MACROHARDRR Data Center in Southaven, Mississippi, which is an expansion of its Colossus 2 complex (named MACROHARD) that sits on both sides of the Mississippi-Tennessee border. MACROHARDRR will house Nvidia's Blackwell graphics processing units (GPUs), which will fuel Colossus, a powerful artificial intelligence (AI) supercomputer.

xAI's Southaven Generating Station will generate 1.9 GW for MACROHARDRR through a simple-cycle configuration, with five heavy-frame gas turbines supplied by Doosan Enerbility. Readers can learn more from a plant profile and project report.

Smaller players in the data-center market also are building their own power plants. Oh Hitt Corporation, a company owned by Oklahoma-based developer Chet Hitt, is considering a second-phase expansion of its power plant in Chickasha, Oklahoma, which would double its gas-fired output to 250 MW. The plant would fuel an industrial park planned by Hitt, who purchased 320 acres of land near the Chickasha Municipal Airport late in 2024. Readers can learn more from a plant profile and project report.

By the Numbers

• More than $13 billion: Total value of capital projects for U.S. gas-fired power projects set to kick off in the fourth quarter
• About $8 billion: Total value of greenfield projects set to kick off in the U.S. through the end of the year
• About $5.5 billion: Total value of unit-addition projects set to kick off in the U.S. through the end of the year

As Grassroots Blossom, Unit Additions Pile Up

Among the highest-valued grassroot projects set to begin construction in the fourth quarter is Fort Worth Power Core LLC's combined-cycle plant in Georgetown, Texas, which is about 30 miles north of Austin. It is intended to serve as a backup plant for Fort Worth-based energy consortium Black Mountain's nearby data center, but excess generation likely will be sent to the regional power grid.

Readers can learn more about the Georgetown development from a plant profile and project report.

While unit additions account for about $5.5 billion of the more than $13 billion worth of U.S. gas-fired power projects that could kick off as early as the fourth quarter, they account for the highest number of projects at 14. They include PowerSouth Energy Cooperative Incorporated's Unit 3 addition at its Charles R. Lowman Energy Center in Leroy, Alabama, which is designed to generate 454 MW from a simple-cycle configuration. Readers can consult a plant profile and project report.

Dominion Energy Incorporated is preparing to expand capacity at its Chesterfield Power Station in Chester, Virginia, by retiring several coal-fired units in favor of four gas-fired, simple-cycle combustion turbines, each with 250 MW of output. The facility will use four of General Electric's Vernova simple-cycle combustion turbines. Readers can learn more from a plant profile and project report.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for capital-spending projects for U.S.-based gas-fired power generation that could kick off in the fourth quarter.

Key Takeaways

• Some of the highest-valued gas-fired power projects are designed to supply power directly to massive, sprawling data centers.
• Smaller players in the data-center market also are building their own power plants.
• Unit additions account for the highest number of projects, at 14.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).