U.S. Fossil Fuel Power Projects Surge to 68 Gigawatts

Developers have significantly ramped up plans for new natural gas capacity to meet the growing demand from data centers.

Updated on Oct. 15, 2026 in Utilities

Isometric editorial illustration of industrial gas turbines and steel piping in an orderly, matte-finished facility. — Developers in the U.S. have proposed 68 gigawatts of new fossil fuel capacity through 2030, driven by surging data center electricity demand. AI Illustration. Upload story photo >

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Do you worry that prioritizing new fossil fuel capacity will lead to higher utility bills?

The U.S. fossil fuel pipeline has reached its highest level in a decade, with developers planning 68 gigawatts of new capacity through 2030. This represents a 45 percent increase in planned projects compared to late 2025.

Why it matters

The rapid expansion of fossil fuel generation is largely driven by the ongoing buildout of data centers. Increased reliance on these plants may leave utility ratepayers more vulnerable to future fuel price volatility.

Planned fossil fuel capacity surged 45 percent in six months to reach a total of 68 gigawatts. These projects currently account for 30 percent of all new energy capacity planned in the United States.

The details

While developers aim to construct significant new natural gas capacity, the industry is currently facing supply chain struggles, including shortages of essential gas turbines. Meanwhile, efforts to move away from older energy sources have slowed, with less than 1 gigawatt of coal capacity retiring last year despite proposals to retire 8.5 gigawatts.

Developers plan to build 68 GW of new fossil fuel capacity between 2026 and 2030.
In late 2025, planned fossil fuel capacity totaled 47 GW.
Last year, plant owners sought to retire 8.5 GW of coal capacity, but less than 1 GW went offline.
Retirement levels for coal plants were last this low in 2009.

Market Landscape

The sudden shift toward fossil fuel investment marks a reversal of the previous industry trend toward rapid decarbonization. This trajectory reflects a competitive environment where utilities must balance immediate power reliability for energy-intensive sectors against long-term climate targets.

Consumers may face higher utility bills in the future if reliance on fossil fuels exposes the grid to unpredictable fuel price swings. Additionally, supply chain delays for new power infrastructure could impact the stability of electricity delivery in growing regions.

The takeaway

The surge in fossil fuel projects highlights the challenge of balancing energy-hungry data center expansion with grid transition goals. Ratepayers should prepare for potential price volatility as utilities prioritize capacity buildouts to meet rising demand.