Houston-based NRG Energy plans four new natural gas plants for AI

HOUSTON – Houston Public Radio reports that Houston-based NRG Energy has announced a venture to build four new natural gas power plants in the U.S. to power artificial intelligence data centers, with some slated for Texas. NRG said it has partnered with energy company GE Vernova and The Industrial Company (TIC), an engineering, construction and procurement company. The goal of the project is to advance the construction of four natural gas combined cycle power plants. Each plant is expected to produce more than 5 gigawatts. In the announcement, NRG Executive Vice President Robert Gaudette said the new plants will be necessary to keep up with the exponentially increased power need associated with the AI industry.

“The growing demand for electricity in part due to GenAI and the buildup of data centers means we need to form new, innovative partnerships to quickly increase America’s dispatchable generation,” Gaudette said. “Working together, these three industry leaders are committed to executing with speed and excellence to meet our customers’ generation needs.” Although NRG did not immediately respond to a request for comment regarding exactly where the new plants will be built, the company said the new facilities will serve the Electric Reliability Council of Texas (ERCOT), which operates the Texas power grid, and the Pennsylvania-New Jersey-Maryland (PJM) regions. The first new plants — accounting for 1.2 gigawatts — are expected to be brought online in 2029. The companies plan to have the remaining plants completed by 2032. The announcement of this joint venture comes several months after NRG began pursuing the construction of three natural gas plants in the Houston area.