Natural gas-fired power generation in the US has reached its highest cost in at least 17 years, according to analysis firm Lazard. Costs are expected to rise further as data center demand accelerates.
The surge in gas power expenses reflects mounting pressure on energy infrastructure from the rapid expansion of artificial intelligence and cloud computing facilities. Data centers require massive amounts of electricity, driving up demand for generation capacity.
Lazard's findings underscore a critical challenge for the US energy sector: traditional gas plants, long treated as reliable backup power sources, now face sustained cost pressures. The 17-year high marks a significant shift in energy economics.
The trend carries implications across multiple sectors. Utility companies may face pressure to upgrade infrastructure, while technology firms racing to build AI capabilities must contend with escalating power costs. Energy-intensive industries broadly face tighter margins.
Experts point to supply constraints, geopolitical factors, and the sheer scale of new data center construction as primary drivers. The question facing policymakers and industry leaders is whether current infrastructure can sustainably meet this surging demand without further cost increases.
UBS upgraded its price target for Micron Technology to $1,625 per share, marking the highest target on Wall Street. The new target represents a significant increase from UBS's previous $535 target.
ASML reported Q2 net sales of €9.3B and net profit of €2.9B, both exceeding analyst expectations. The semiconductor equipment maker raised its 2026 net sales guidance to €43B-€45B from €36B-€40B.
President Trump is expanding his data center infrastructure pledge to include Republican governors and major utilities. The agreement requires data center developers to cover their own energy and infrastructure costs.
Surging demand from data centers has increased public electricity costs by $23 billion, according to analysis. The trend reflects the infrastructure strain caused by AI and cloud computing expansion.