⚡CCGT Power Plant Costs Surge 66% in Two Years
Your data center's electricity bill is about to skyrocket
TL;DR
The cost to build a combined cycle gas turbine (CCGT) power plant has surged 66% in two years, driving up electricity costs for data centers. Utilities will likely pass these expenses onto customers.
The price of building a new CCGT power plant has spiked by 66%, from under $1,500 per kilowatt to $2,157 last year. This increase is due to higher demand for electricity, particularly from data centers, which are expected to grow tenfold over the next decade. Utilities will likely pass these costs onto customers, leading to higher electricity bills for data center operators.
Key Points
Cost of building a new CCGT power plant has risen from under $1,500/kW in 2023 to $2,157 last year
Construction time for new facilities increased by 23% over the past two years
Data center capacity is expected to grow from 40 GW today to 106 GW by 2035, up 2.7x current demand
Average data centers will exceed 100 MW in size over the next decade as planned facilities are larger than those currently operational
Shortage of gas turbines has caused prices to rise by up to 195% since 2019
Why It Matters
If you're planning a new data center, expect higher electricity costs due to the surge in CCGT power plant construction. The average facility will be larger than 100 MW over the next decade, and utilities are likely to pass on these increased expenses.
Frequently Asked Questions
Why does this matter?
If you're planning a new data center, expect higher electricity costs due to the surge in CCGT power plant construction. The average facility will be larger than 100 MW over the next decade, and utilities are likely to pass on these increased expenses.
What happened?
The cost to build a combined cycle gas turbine (CCGT) power plant has surged 66% in two years, driving up electricity costs for data centers. Utilities will likely pass these expenses onto customers.
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