Gas versus renewables: how will the power demand of data centres be met?

Andrew Tunnicliffe | Source: Veredict | Posted 08/08/2025

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With the boom in AI data centres piling pressure on the energy system, which energy source – gas or renewables – is better suited to meet power demand? Texas and Malaysia represent valuable case studies.


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Texas is becoming a hub for both traditional ranching and modern renewable energy, boasting over 15,300 wind turbines and 197 solar farms that frequently meet more than 45% of the state's electricity needs. However, proposals for over 100 new gas-fired power plants have sparked controversy, particularly as many of these projects seek access to taxpayer funds. While Texas leads in both renewable and gas-based thermal power, the increasing demand from data centers, driven by the AI boom, raises questions about the best energy sources to support this growth.

Data centers are projected to significantly increase electricity consumption globally, with the U.S. seeing a nearly quadrupled investment in this sector from 2019 to 2024. Although some argue that gas power is necessary for reliability and grid stability, others, like Dennis Wamsted, contend that Texas's renewable energy capacity can meet the demands of data centers without relying on fossil fuels. As both Texas and Malaysia navigate this energy transition, the debate continues over whether renewables alone can support the burgeoning tech industry or if gas must play a role in the interim, highlighting the complexities of balancing energy needs with sustainability goals.



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Source Link: https://www.verdict.co.uk/gas-versus-renewables-how-will-the-power-demand-of-data-centres-be-met/?cf-view

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