Lazard reports that the cost of generating electricity from natural gas-fired power plants in the United States is at its highest level in at least 17 years. Both outlets covering the report say the measure is already elevated and is expected to increase further. The projected rise is linked to strengthening electricity demand associated with the growth of new data centers. As data centers expand, they require additional power capacity, which can intensify demand pressures in electricity markets. Lazard’s assessment indicates that current gas-power economics are under strain and that upward movement is likely to continue if demand growth persists. While the specific drivers behind the higher costs are not detailed in the provided excerpts, the shared takeaway is that gas-based generation is becoming more expensive and that demand growth from data center construction and expansion is a key factor expected to push costs higher. The reports therefore present a consistent picture: US gas-power costs are at a multi-decade peak baseline and face additional upward pressure ahead.
US gas-power costs reach 17-year high as demand from data centers rises
Lazard reports that the cost of generating electricity from natural gas-fired power plants in the United States is at its highest level in at least 17 years. Both outlets covering the report say the m...
- Lazard says the US cost of electricity from natural gas-fired plants is at the highest level in at least 17 years.
- Both reports state the costs are expected to rise further.
- The expected increase is tied to growing electricity demand from new data centers.
- The reports present gas-power economics as currently elevated and under upward pressure.
- The analysis is based on Lazard’s assessment of power generation costs in the US market.
The cost of power from natural gas-fired plants in the US hit the highest level in at least 17 years, and is poised to climb even higher as demand surges from new data centers.
8 hours agoThe cost of power from natural gas-fired plants in the US hit the highest level in at least 17 years, and is poised to climb even higher as demand surges from new data centers.
12 hours ago
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