Pipeline operators strike deals for colocated gas generation to power data centers
Key Questions
What is driving the trend of colocated gas generation for data centers?
Grid interconnection delays are a key driver, as 60% of planned 2027 capacity is not yet under construction. Behind-the-meter gas generation allows developers to bypass these delays, with 80% of on-site generation being gas-fired.
What capacity is expected from colocated gas facilities by 2030?
Colocated facilities are projected to serve 22-32 GW by 2030. Western projects include the Switchgrass lateral, Green Chili lateral, and Southwest Gas expansion in Nevada.
What concerns does this trend raise?
It prompts questions about environmental impacts and regulatory responses. Utility rates and environmental concerns are driving state-level scrutiny according to national policy analysis.
A growing trend of behind-the-meter gas generation is emerging to bypass grid delays. 80% of on-site generation is gas-fired; colocated facilities expected to serve 22-32 GW by 2030. Specific western projects include the Switchgrass lateral, Green Chili lateral, and Southwest Gas expansion in Nevada. This raises questions about environmental impacts and regulatory responses. The national policy analysis notes that utility rates and environmental concerns are driving state-level scrutiny. A new WSJ analysis confirms that grid interconnection delays are a key driver of this self-generation trend, with 60% of planned 2027 capacity not yet under construction.