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Updated · Bloomberg · Jul 13US Gas Power Costs Hit 17-Year High as Data Center Demand Climbs
1 articles · Updated · Bloomberg · Jul 13Summary
- US power costs from natural gas-fired plants have reached their highest level in at least 17 years and are still rising, according to Lazard.
- New data centers are driving the increase by boosting electricity demand, adding pressure to gas-fired generation costs.
- Lazard measures the trend through levelized cost of energy—the long-term power price a plant must earn to break even.
- The rise signals mounting strain on US power economics as data center expansion reshapes electricity demand.
Insights
With soaring costs and volatile fuel prices, is investing in new natural gas power a smart bet or a costly mistake? With AI's immense power demands, can the aging U.S. grid be upgraded in time to avert a crisis? Will tech giants' private power grids protect consumers or create a two-tiered system of energy reliability?