As demand for energy-intensive data centers — especially those supporting AI workloads — soars, many operators are turning to on-site, “behind-the-meter” natural gas power generation rather than relying entirely on grid electricity. These behind-the-meter gas systems (such as modular generators or dedicated gas turbines) provide reliable, continuous power without the lengthy delays often associated with renewable grid connections or large battery build-outs. Natural gas is comparatively quick to deploy, compact, and can meet the strict uptime requirements of 24/7 data center operations.
This shift is part of a bigger trend where data centers are driving renewed natural gas demand. Utilities and industry analysts have identified that a significant portion of planned gas-fired generation capacity — including dedicated on-site plants — is linked to powering new data centers, particularly in the U.S. and tech hubs like Texas. The urgency to get facilities online quickly — rather than waiting years for grid upgrades — makes gas a go-to choice despite renewable growth.
Natural gas is composed mainly of methane, a potent greenhouse gas with a warming effect many times greater than carbon dioxide over short timeframes. While burning methane for electricity produces less CO₂ than coal, leaks during extraction, transport, and distribution can dramatically increase its climate impact. Globally, fossil fuel activities — including natural gas production — are a major source of methane emissions, and efforts to track and reduce these leaks are a significant part of climate mitigation strategies.
This reliance on fossil fuel generation for data centers raises climate concerns. Although some tech companies are exploring certified low-methane gas supplies or carbon capture to mitigate impacts, the large scale of gas-based power plants means locked-in emissions risks that can persist for decades, potentially undermining broader decarbonization goals. Thus, even as data centers drive technological innovation, their growing use of natural gas highlights a key challenge in meeting climate targets without faster deployment of low-carbon firm power solutions.
