Switched On AI’s Tilt from Clean Power to Gas: Analyst Reaction
Jan 16, 2026
Atin Jain, a specialist from BNEF's wind team, dives into the transformative impact of AI-driven data center demands on power generation. He explains how data centers are pushing utilities like NextEra to expand gas capacity for quicker interconnection compared to renewables. Jain discusses NextEra's strategy of building dedicated generation near data hubs and their partnerships with tech giants like Google and Meta. He also examines the delicate balance between gas and renewables in the quest for a reliable, clean energy future.
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AI Data Centers Shift Power Demand Fast
- AI data centers are driving a rapid rise in U.S. power demand expected to reach ~12% of electricity by 2035.
- Atin Jain says speed, scale, and reliability needs make gas attractive where renewables face delivery delays.
'Bring Your Own Generation' For Hyperscalers
- NextEra is packaging generation as a product for hyperscalers, offering fast, location-specific capacity.
- Jain notes this 'bring your own generation' approach pairs renewables and firm gas to meet tight timelines.
Time To Power Beats Lowest Cost Today
- Time-to-power is currently outranking lowest-cost solutions in early AI hub builds.
- Jain explains delivery risk and interconnection delays make firms accept faster-deploying gas alongside renewables.