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Gas Is Letting Data Centers Grow Beyond the Grid | Switched On
Posted
July 23, 2026
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July 23, 2026
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28:49Now PlayingArtificial intelligence is heating up the race to build data centers, and with BloombergNEF projecting 194 gigawatts of demand by 2035, the biggest challenge isn't computing power…. It's electricity. Faced with years-long grid connection delays, developers are turning to on-site gas generation to bring projects online faster, creating a rapidly expanding market for turbines, engines, fuel cells and battery storage. Choosing the right technology is a trade-off between speed, cost, efficiency and emissions. And while on-site generation is often seen as a temporary bridge, developers are also weighing what role those assets could play once permanent grid connections become available. So is on-site gas generation a lasting part of the AI data center boom, or simply the fastest route through today’s power constraints? On this episode, Tom Rowlands-Rees is joined by Musfika Mishi, an analyst from BNEF’s technology and innovations team, to discuss her note “Data Center On-Site Gas Power Costs: Engines Beat Turbines.”
Complementary BNEF research on the trends driving the transition to a lowercarbon economy can be found at BNEFGO on the Bloomberg Terminal or on bnef.com ()
Links to research notes from this episode:
Data Center OnSite Gas Power CostsEngines Beat Turbines ()
See omnystudio.com/listener () for privacy information.
The future of energy, transport, sustainability and more, as told by BNEF analysts. Each week, Dana Perkins and Tom Rowlands-Rees sit down with BloombergNEF (BNEF) analysts to uncover the key findings and stories behind their latest research.
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