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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)
Summary
A major development in North Dakota leads the third-quarter project starts for natural gas-fired power-generation construction across the U.S., with the growth in data centers driving a significant share of the investment.No Surprises in Domestic Demand Trend
U.S. demand for natural gas-fired power generation is expected to hit record highs this year, according to the U.S. Energy Information Administration's Short-Term Energy Outlook, published last week. With coal-fired generation expected to continue its decline, despite market-defying efforts from the Trump administration, more gas-fired generation is coming online in the near term.Industrial Info Resources is tracking about $10 billion worth of natural gas-fired power-generation projects across the U.S. that are set to begin construction in the third quarter, more than 70% of which is attributed to grassroot projects.
The EIA predicts U.S. consumption of natural gas--which includes other uses for the fossil fuel, such as liquefied natural gas (LNG) production--will rise from a record 91.9 billion cubic feet per day in 2025 to 92.1 billion in 2026 and 95 billion in 2027. While domestic power generation constitutes a clear majority of gas consumed, LNG's share has risen from 0.06% of U.S. dry gas production to 11.6% in 2024, according to the Institute for Energy Economics and Financial Analysis.
According to Industrial Info Resources data, about 17% of the total investment value and about 23% of the new megawatts (MW) to be eventually brought online from gas-fired projects set to kick off in the third quarter can be attributed to a single project: Basin Electric Power Cooperative's Bison Generation Station in Ray, North Dakota. The natural gas-fired, combined-cycle (NGCC) plant is expected to generate 1.49 gigawatts (GW) and feature carbon-capture technology.
"It's a large power plant, the largest natural gas power plant in the state and the largest investment in Basin's history," said Dana Hager, communications manager with Basin Electric, in an April interview with Minot Daily News. Industrial Info Resources offers more information on the Bison 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.
Other grassroot projects that could begin construction before the end of September include the Broadwing Clean Energy Complex in Decatur, Illinois, which is designed to generate up to 400 MW from combined heat-and-power (CHP), with carbon capture and storage (CCS) technology. Alphabet Incorporated, the parent company of Google, gave the project a massive boost in October when it agreed to buy the facility's output to supply its data centers in the region.
The Broadwing project is owned by Low Carbon Infrastructure, a portfolio company of I Squared Capital Advisors LLC. Readers can learn more from a detailed plant profile and project report.
By the Numbers
- About $10 billion: Total value of U.S. gas-fired power-generation projects set to begin construction in the third quarter
- 95 billion: Total cubic feet per day of natural gas consumption expected from the U.S. in 2027, according to the EIA
- About 23%: Share of the MW expected to be eventually brought online from third-quarter kickoffs attributed to Bison project
Making Old Plants New Again
Other data center-oriented projects include American Electric Power Company Incorporated's Scioto Darby Creek Fuel Cell Facility in Hilliard, Ohio, which is designed to use a non-combustion method, called "solid-oxide fuel cells," to convert natural gas into electricity. The output will go toward Amazon.com's Hilliard Data Center Campus, located five miles north. Readers can consult a detailed plant profile and project report.Some developers are opting to overhaul existing--in some cases, long-closed--power-generation facilities. Such "brownfield" projects include Lafayette Utilities System's Louis 'Doc' Bonin Power Station in Lafayette, Louisiana, which stopped generating power from three gas-fired steam turbines in 2013; the company plans to modernize the facility with simple-cycle technology to generate 260 MW. Readers can learn more from a detailed plant profile and project report.
The EIA estimates that rising natural gas demand for domestic electricity generation, as well as the ongoing growth in natural gas and LNG exports, will put upward pressure on natural gas prices in the second half of 2027. For more information, see June 11, 2026, article - Forecasts Point to Higher U.S. Gas Production and Consumption.
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 natural gas-fired power-generation projects across the U.S. that are set to begin construction in the third quarter.
Key Takeaways
- U.S. demand for natural gas-fired power generation is expected to hit record highs this year.
- U.S. consumption of natural gas is expected to continue is annual records through next year.
- Rising natural gas demand, for both power generation and LNG exports, is putting upward pressure on natural gas prices.
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).
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