Data center demand for natural gas power has led to a surge in the costs of new combined-cycle gas turbine (CCGT) power plants, according to a report from BloombergNEF.

The report found that the cost of a new CCGT plant has skyrocketed from less than $1,500 per kilowatt of generating capacity in 2023 to $2,157 in 2025, a 66 percent increase. In addition, the lead time for a new facility has also increased, taking on average 23 percent longer to construct.

Demand from the data center sector has been posited as one of the major drivers of this increase, as more and more seek to “bring their own power,” under pressure from the Trump administration.

This has had an impact on the supply chain for gas power plants, with prices for equipment for new gas plants expected to be more than 195 percent higher than in 2019. In addition, due to the incredibly constrained nature of the gas turbine manufacturing sector, last year it was reported that producers were seriously struggling to keep up with demand, with delivery backlogs beginning to stretch past 2029.

While prices are expected to soar, this has not put off data center developers from seeking to develop new gas-fired facilities for their data center operations.

Notable recent deals have seen Microsoft and Meta commit to offtake significant amounts of capacity from natural gas plants to power their operations.

Demand for dispatchable gas power has also led to new players in the market emerging, offering more modular solutions. The most notable recent example of this came last December, when Crusoe signed a deal with Boom Supersonic to purchase 1.21GW of the company’s Superpower turbines, a 42MW natural gas turbine supplied in a shipping container-scale unit.