UII UPDATE 290 | OCTOBER 2024
Intelligence Update

On-site natural gas: why some sites need it

Data center operators in areas where the electricity grid is constrained are increasingly considering on-site power generation. For various reasons, in most parts of the world today, natural gas is their preferred choice of energy source.

This approach runs counter to the net-zero pledges made by the largest data center operators. While natural gas has lower emissions than coal-fired electricity, these are still far above the zero emissions of wind and solar generation assets. However, the increased deployment and use of natural gas generation is inevitable given a coming crunch in electricity demand and distribution, and likely problems with grid interconnectivity and stability.

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