Utilities across the Southeastern US have announced huge increases in data center demand across their footprint. For example, in Dominion Energy’s latest earnings call, it was revealed that the Virginia-based utility has approximately 40GW of data center power capacity under contract in various stages of contracting as of December 2024.

In order to meet the projected demand, utilities are increasingly turning to natural gas generation as a solution. In this episode, we talk to Cathy Kunkel, energy consultant at the Institute for Energy Economics and Financial Analysis (IEEFA), about a recent report she authored on the increased buildout of gas power plants and pipelines in the Southeast US. We explore the drivers of the buildout, how midstream pipeline companies are responding to the increased demand, and the risk of overbuild if the projected data center demand doesn't come to fruition.

The IEEFA is a global think tank examining issues related to energy markets, trends, and policies. A link to the report can be found here.