Data center demand drives 66% surge in natural gas power plant costs

Surging data center demand driven by AI is creating a critical infrastructure crisis: natural gas power plant construction costs have jumped 66% in two years to $2,157/kW, while turbine equipment lead times now stretch into the early 2030s with prices up 195% since 2019. CIOs and technology leaders must recognize that securing reliable power for data center expansion is becoming a significant operational and financial constraint, with alternative renewable energy solutions like long-duration storage now potentially more cost-effective than traditional natural gas infrastructure. This shift will fundamentally impact IT capital planning, site selection strategies, and the feasibility timelines for large-scale AI infrastructure investments.