The North Carolina Utilities Commission rejected a proposed 250-megawatt natural gas power plant by Duke Energy in September. The utility had planned to build the $500 million facility near Charlotte to supply electricity to a 21-building Amazon complex. Commissioners cited President Donald Trump’s Ratepayer Protection Pledge as the basis for the denial, stating that Duke failed to demonstrate how consumers would be shielded from construction costs. The commission ruled that any future application must include cost recovery mechanisms compliant with the voluntary agreement.
What it means
The rejection occurs as U.S. natural gas infrastructure development accelerates. The U.S. Energy Information Administration (EIA) revised its forecasts upward in September, projecting dry gas production to reach 107.6 billion cubic feet per day (bcfd) in 2025, 111.7 bcfd in 2026, and 115.9 bcfd in 2027. Domestic consumption is projected at 91.9 bcfd in 2025, rising to 94.3 bcfd by 2027. Average liquefied natural gas exports are expected to grow from 15.1 bcfd in 2025 to 18.6 bcfd in 2027.
A surge in artificial intelligence data center construction is driving much of this capacity expansion. Roughly half of new gas capacity under development is linked to these facilities, with many operators choosing gas over renewable energy sources. Tech companies have reportedly invested in smaller, less efficient turbines due to backlogs in more efficient models. According to the Global Energy Monitor, U.S. gas power capacity at any stage of development rose 50 percent since January, from 252 gigawatts (GW) to 378 GW. This represents one-third of the global total. If all projects are completed, the U.S. gas fleet would increase by two-thirds, with a combined capital cost of $647 billion. Under-construction gas projects increased 76 percent in the first half of the year.
The Trump administration has promoted new data center construction and eliminated certain environmental reviews. Meanwhile, Bank of America reported that American utility bills have risen faster than inflation over recent summer months.
Key facts
- Duke Energy proposed a 250-megawatt, $500 million gas plant near Charlotte for an Amazon facility.
- North Carolina Utilities Commission rejected the project in September citing ratepayer protection concerns.
- EIA projects U.S. dry gas production to hit 115.9 bcfd by 2027.
- U.S. domestic gas consumption is projected at 94.3 bcfd in 2027.
- LNG exports are expected to average 18.6 bcfd in 2027.
- U.S. gas power capacity under development stands at 378 GW, up from 252 GW in January.
- Total capital cost for all projected U.S. gas projects is $647 billion.
- Under-construction gas projects rose 76 percent in the first half of the year.
Source: Energy Department and Global Energy Monitor data, reporting North Carolina Utilities Commission decision