North Carolina regulators rejected a Duke Energy proposal for a 250-megawatt natural gas power plant in September, citing concerns over consumer costs. The Republican Party-controlled North Carolina Utilities Commission blocked the $500 million project, which was intended to power a large Amazon facility under construction near Charlotte.
Commissioners argued that Duke, the state's largest utility, failed to adequately demonstrate how consumers would be protected from construction expenses. Their decision referenced President Donald Trump's Ratepayer Protection Pledge, a voluntary White House agreement designed to shield American consumers from price hikes linked to data center energy and infrastructure demands.
The rejection signals growing pressure on U. S. authorities to curb development lacking clear cost-recovery guarantees for consumers. Commissioners indicated that any reapplication from Duke would require robust cost recovery mechanisms compliant with the pledge.
This local setback comes as the United States is poised to significantly expand its natural gas output, with production expected to reach record highs in 2026 and 2027. The country aims to solidify its position as a dominant global gas producer and supplier, partly to fill gaps created by energy trade restrictions through the Strait of Hormuz.
Both the supply and demand for U. S. natural gas are projected to climb to unprecedented levels this year and next, according to the U. S. Energy Information Administration (EIA). The EIA revised its predictions upwards in September compared to August forecasts.
Dry gas production is forecast to rise from a record 107.6 billion cubic feet per day (bcfd) in 2025 to 111.7 bcfd in 2026 and 115.9 bcfd in 2027. Domestic gas consumption is also projected to increase, from a record 91.9 bcfd in 2025 to 92.2 bcfd in 2026 and 94.3 bcfd in 2027.
The EIA further anticipates average U. S. liquefied natural gas exports will grow from a record 15.1 bcfd in 2025 to 17.4 bcfd in 2026 and 18.6 bcfd in 2027. While China has historically led in several energy sectors, the United States has established itself as the world's leading natural gas power.
A report from Global Energy Monitor (GEM) highlights a significant shift, noting that the United States is now constructing roughly twice as much gas-fired capacity as China, surpassing any other nation globally. This follows a 76 per cent increase in under-construction projects during the first half of the year.
Total U. S. gas power capacity, across all stages of development, has surged by 50 per cent since January, from 252 GW to 378 GW, representing a third of the global total. If all these projects reach completion, the United States would expand its gas fleet by approximately two-thirds, incurring a capital cost exceeding $647 billion.
Roughly half of this new capacity is directly tied to the rapid expansion of data centers across the country, particularly those supporting artificial intelligence. Many operators are choosing natural gas over renewable energy sources to power these facilities, a decision expected to substantially increase U. S. carbon emissions over the next decade.
Spending by the United States on gas- and coal-fired power plants is projected to outpace China's for the first time in decades. A project manager at Global Energy Monitor stated,
There has been an enormous surge in data centre proposals powered by gas in the past year, and the climate implications of that are huge. Building all of this gas for AI locks in decades of pollution, and it is also locking in dependence on a volatile fuel cost, which will get passed down to rate payers.
The rush for efficient gas turbines has created backlogs, compelling some tech companies to invest in smaller, less efficient, and more polluting alternatives. Environmental activists and residents have voiced increasing criticism regarding the environmental impact of data centers, advocating for stricter sector regulation.
The Trump administration has actively supported the construction of new data centers, streamlining the process by eliminating environmental reviews ahead of the midterm elections. Yet, consumer energy costs have been a growing concern.
American utility bills have risen significantly since Trump took office, increasing faster than inflation during the summer months, according to a recent Bank of America report. This backdrop of rising consumer expenses underscores the significance of the North Carolina commission's decision.
