Commodities July 1, 2026 01:36 PM

Planned On-Site Gas Plants for U.S. Data Centers Could Produce Emissions on Par with Entire Nations, Report Finds

Environmental group flags rapid, low-transparency approval of 'behind the meter' gas generators powering data hubs and the health and climate impacts they may carry

By Jordan Park
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An environmental group’s review of 74 proposed gas-fired power plants intended to supply data centers directly estimates these projects would produce 143 gigawatts of capacity and emit about 662 million tons of greenhouse gases annually - a scale comparable to the annual emissions of countries such as France or Australia. These so-called off-grid or "behind the meter" facilities are advancing quickly across several U.S. states, often bypassing the federal permitting, environmental study and public hearing processes that apply to grid-connected plants, the report says.

Planned On-Site Gas Plants for U.S. Data Centers Could Produce Emissions on Par with Entire Nations, Report Finds
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Key Points

  • Environmental Integrity Project reviewed 74 proposed gas-fired power plants intended to power data centers directly; the projects would total about 143 gigawatts and emit an estimated 662 million tons of greenhouse gases annually.
  • Off-grid, or "behind the meter," plants are advancing rapidly and often with limited transparency by avoiding the federal interconnection and permitting processes applied to grid-connected facilities; nearly half of the identified projects are planned in Texas, with significant numbers in Ohio (10), Pennsylvania (6) and West Virginia (4).
  • The approvals and construction momentum for these facilities intersect with federal policy priorities to accelerate data center build-out; public opinion appears mixed, with a recent Ipsos poll showing roughly one in three Americans approve of the current rapid pace of data center construction.

A recent analysis by an environmental organization identifies 74 planned natural gas power plants in the United States that are intended to provide electricity directly to data centers, rather than connecting to the broader electric grid. The group estimates the projects would together represent about 143 gigawatts of generation capacity and produce roughly 662 million tons of greenhouse gas emissions each year.

These projects are commonly described as off-grid or "behind the meter" installations. The report notes that such developments are securing approvals across the country unusually quickly, often with limited public visibility. A separate review of regulatory filings and interviews with public officials, residents, researchers and industry executives found that by avoiding the interconnection process used for grid-tied plants, many of these projects are not subject to the same federal regulatory hurdles and can progress from proposal to construction in weeks or months rather than in the years typically required.

Developers of the off-grid plants argue that because the facilities are built to serve private customers directly, they are exempt from a number of the rules and procedures that apply to projects seeking to connect to the U.S. electric grid. The environmental group’s report emphasizes that the cumulative greenhouse gas footprint of the 74 facilities would rival the annual emissions of major economies, and raises concerns about the local public health implications linked to emissions of pollutants such as nitrogen oxides (NOx) and benzene.

"An industry of the future should not be chained to dirty fuels of the past and the air pollution from fossil fuels that cause real harm to communities," said Jen Duggan, executive director of the Environmental Integrity Project.

Geographically, the projects identified are concentrated in several states. Nearly half of the 74 plants are slated for Texas. Other states with multiple planned facilities include Ohio with 10 projects, Pennsylvania with six and West Virginia with four.

Federal officials from the previous administration have continued to advocate for accelerated data center construction, framing rapid development and streamlined permitting as matters of national security and economic competitiveness. Some administration figures have taken steps intended to reduce barriers to building and powering data center infrastructure.

Environmental Protection Agency Administrator Lee Zeldin commented on the broader policy context, saying that many Americans would support efforts to ensure the United States prevails in competition to become the global hub for artificial intelligence. At the same time, public sentiment appears divided: a recent Ipsos poll conducted last month indicated that only about one in three Americans approve of the fast pace of data center construction, a topic that has been prominent in political conversations ahead of the November 3 midterm elections.


The findings in the environmental group’s report spotlight a tension between the rapid growth of the data center sector and the regulatory framework that governs large-scale power generation. By moving outside the conventional grid interconnection route, proponents say projects can meet urgent customer demand without lengthy delays. Critics point to the report’s emissions estimates and public health warnings to argue that the approach shifts environmental and health burdens to local communities while producing greenhouse gas emissions at a scale that matters for national climate targets.

The report’s authors and advocates are urging greater scrutiny of the permitting and approval processes that allow such facilities to proceed, while developers maintain the legal basis for treating private, behind-the-meter projects differently from grid-connected power plants. The debate highlights competing priorities: supporting data center expansion quickly, and ensuring environmental protections and community health safeguards are maintained.

At present, the list of projects, the emissions estimates and the geographic distribution provided in the report form the basis for ongoing scrutiny from policymakers, community groups and regulators as the pace of data center-related power development accelerates.

Risks

  • Elevated greenhouse gas emissions at a national scale - the aggregate annual emissions estimated for these projects are comparable to entire countries, posing climate-related risks for energy and environmental policy decisions (impacts the energy, environmental policy and market sectors).
  • Local public health and pollution concerns - emissions of NOx and benzene from these fossil-fueled plants could create or exacerbate health risks for nearby communities (impacts public health, local governments and real estate/insurance markets).
  • Regulatory and political uncertainty - the use of exemptions for behind-the-meter facilities and the push to expedite data center infrastructure create uncertainty for investors and communities about permitting standards, enforcement and potential future policy changes (impacts construction, utilities and technology sectors).

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